Topic: Fractional Reserve

The hosts discuss the mechanics of the Federal Reserve as the "lender of last resort," arguing that the banking system is currently being kept afloat by $1 trillion in weekly loans. They critique Glenn Beck's "double counting" of overnight loans but agree that the system is on the brink of collapse. The segment highlights the ongoing balance sheet problems of major financial institutions.

The hosts discuss the success of BuzzFeed's list-based "clickbait" strategy, which targets "masses of morons" with celebrity news and health teasers. They also note a high number of accountants and auditors in their audience who have written in to discuss fractional reserve banking and double-entry bookkeeping. The segment highlights the shift in media consumption toward short-form, low-information content.

The discussion covers claims that fractional reserve banking creates money from a "birth account" using an individual's signature as collateral. The theory posits that every American is assigned a value of approximately $9.2 million at birth, which the banking system then exploits. The hosts explore the idea of the United States being registered as a legal business entity rather than a traditional government.

European banks like ABN AMRO are launching campaigns to discourage the use of cash, while countries like Italy and Spain have implemented laws making large cash transactions illegal. Herman Van Rompuy, President of the European Council, explained a plan to increase the European Investment Bank's capital by 10 billion euros to generate 180 billion euros in new loans. This "shell game" is described as a way for the central banking system to maintain control over the economy.

Speculation regarding a potential collapse of the Euro suggests that Germany may be preparing to return to the Deutsche Mark. The hosts theorize that WikiLeaks may be holding blackmail material on major banks, which could trigger a global bank run if released.

Siemens, a major manufacturer of high-speed rail equipment, is establishing its own bank to bypass traditional lenders and access central bank liquidity. This move is discussed alongside Deutsche Bahn's plans for expanded rail service in Europe and Singapore's "Go Green" transit advertising campaigns.

A U.S. Court of Appeals has ruled that the Federal Reserve must disclose documents identifying the firms that received $2 trillion in emergency loans following the 2008 collapse. The hosts discuss the opposition from major banks like JPMorgan and Citigroup, who fear a loss of public trust. They also explain the "fractional reserve" system and criticize Ben Bernanke's move toward zero-reserve requirements for investment banks.