What would happen if the Federal Reserve increased the reserve requirement in banks?
First the Federal Reserve is a private/quasi-public bank that is not for the government or the people. They are the reasons for the hyper-inflation and the devaluing the value of our currency. We need to have the H.R. bill to pass the auditing of this corrupt system. If it were to be audited a rookie accountant could smell problems. Anyway I digress. To your question, you must understand a little something called fractional reserve banking. To simplify….. a bank needs capital to loan out in the form of mortgages and loans, so they can constantly collect interest. Interest is a banks way of making it’s own capital. Unfortunetly they borrow all of their money to collect more interest payments. Well if banks didn’t have customers they wouldn’t have deposits. The banks follow a percentage given out by the Federal Reserve, varying in different times, that tells banks the amount to hold as a reserve in their vaults. The rest is considered excessive assets and can be loaned out, so the bank
