I am trying to wrap my head around the current US banking system and it is very difficult. I have read books by Ron Paul, What has government done to our money by Rothbard, Economics in One Lesson by Hazlitt, and various other articles and books. But I cannot seem to find much literature specifically dealing with the current US banking system and how it works. I get the general facts and the effects of fractional reserve and central banking, but I don't understand all the details.
Specifically, how does fractional reserve banking create money? Some say you deposit money, and then 90% of that is loaned. Others have said the loan is created first. I don't know who to believe. I would greatly appreciate any links to videos, articles, or books that can explain what is going on, or your own thoughts if you can. Thanks!
Check out these resources. I think that'll do ya.
Interest, Yield curves, term structure of savings: http://mises.org/journals/qjae/pdf/qjae13_3_5.pdf
Edwin Vieira, Jr. Forgotten role of constitution in monetary law http://hiwaay.net/~becraft/VieraTexasLawReview.pdf
Money, Bank Credit, and Economic Cycles: http://library.mises.org/books/Jesus%20Huerta%20de%20Soto/Money,%20Bank%20Credit,%20and%20Economic%20Cycles.pdf
Mystery of Banking: http://mises.org/Books/mysteryofbanking.pdf
What is money: http://mises.org/journals/qjae/pdf/qjae5_3_7.pdf Case Against the FED: http://mises.org/books/fed.pdf True Purpose of Glass Steagall: http://mises.org/journals/qjae/pdf/qjae1_1_1.pdf
History of Money and Banking: http://mises.org/books/historyofmoney.pdf
29 trillion of FED activity since 2008 http://www.levyinstitute.org/pubs/wp_698.pdf
Ah perfect. That should more than do it. I just started the Mystery of Banking by Rothbard. I will check out those others as well. Thanks.