In a nutshell, 'Fractional Reserve' banking fraud is where banking financiers only have 'fractional' as opposed to 'complete' reserves to cover their loans. Private banks loan out more money than they have. Banks often loan nine to eleven times more money than they hold in reserve. So in reality, one could say it is a 'Fictional Reserve' banking scam. http://www.articledashboard.com/Article/The-Fractional-Reserve-Banking-Fraud/652854
It is a scam because these financial institutions charge 'compounding interest rates' on loans which are nothing more than 'computer entries'. So, the banksters receive interest money from those of us that borrow, however, the banksters have done nothing to earn that 'compounding interest'. The Banksters loan us money that essentially does not exist. For example: The borrower, you and I, must pay back a mortgage of two hundred thousand dollars ...along with another two hundred thousand dollars in interest charges over 20 years. We, the borrower, must earn that four hundred thousand dollars with hard-labor and daily effort, while the banksters do nothing other than make an entry into their computers.
See also, "The History of Banking Fraud". http://www.blissful-wisdom.com/the-history-of-banking-fraud.html Once one understands that a handful of banking privateers have complete control of the world's money systems....then the course of world events such as politics, booms and recessions, illegal warfare, and corporate dictatorship falls into place.
"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." - Thomas Jefferson
It
is impossible to understand the world today without knowing what the
ESF is and what it has been doing. Officially in charge of defending
the dollar, the ESF is the government agency which controls the New
York Fed, runs the CIA's black budget, and is the architect of the
world's monetary system (IMF, World Bank, etc). ESF
financing (through the OSS and then the CIA) built up the worldwide
propaganda network which has so badly distorted history today
(including erasing awareness of its existence from popular
consciousness). It has been directly involved in virtually every major
US fraud/scandal since its creation in 1934.