TheblackBay
Welcome To The Blackbay:
I'm an independent Audio Artist.
I'm interested in Sociology, Psychology & Symbolism.
I understand the modern simple Macro economic situation.
A Central Bank Symbolised as a Cog
editThe Central Bank is a Giant cog picture a giant cog in the centre of the country the commercial banks are smaller cogs connected to this central cog as the central cog spins to the right money is expanded into the country the smaller cogs spin at a higher ratio.
if the central cog spins left the money in the country is reduced.
because of Fractional reserves the smaller cogs are all geared at a much higher ratio , picture a smaller cog connected to the large cog, then picture smaller still connected to those.
when the Central Cog turns just slightly to the right money gets pushed out by the higher ratio in the smaller cogs, but then when the (Fed) or (central Bank) (central Cog) wishes to crash or stop the economies expansion it will stop the central cog and turn it to the left (all the outside cogs push money back at the higher ratio) the economy crashes.
Fractional Reserve is the Cog ratio.
Why would the (central Cog) do this well because no one will blame them they will blame the government an that is effective control.
-TheblackBay 13:33, 30 August 2006 (UTC)