Tuesday, June 10, 2008

Money created from debit - oil prices continue to soar

Just saw an article about Spanish hauliers on fuel strike where it says:

"The Spanish government says it is preparing a package of measures to assist the transport sector.

These measures include emergency loans, more flexible contracts and cash payments to older lorry drivers who are willing to retire."

The fractional reserve banking system just found more fuel for the fire:

In short, there are two types of money in a fractional-reserve banking system:

  1. central bank money (physical currency such as coins and paper money)

  2. commercial bank money (money created through loans) - sometimes referred to as checkbook money

Expect prices to get higher

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