The economy is the foundation of the well-being of every person in the country.

The Direct Democracy Forum (DDF) will be crafting an economy that seeks to empower all for the benefit of all rather than empower the few for the benefit of the few.

A critical element of the economy is the banking sector.  More and more attention is being drawn to the modern banking system which relies on Fractional Reserve Banking.  What this means is that banks lend out or otherwise invest many times the value of the funds that are deposited with them.  A bank may take a deposit of R100 and against that single deposit and as a result of the ‘multiplier effect‘, banks can collectively lend out as much as R900 rand (where the reserve requirement is 10%), in effect printing money and fueling inflation and extravagances and often largely fictitious profit.  This is a long established practice, of which you can learn more here and here For the latter, follow the links.  The topic is hotly debated.  

Fractional Reserve Banking is not in itself a bad thing.  So long as there are no excesses, that adequate reserves exists and that a back-up process exists to protect the public, things can go wonderfully well.  When excesses become the norm and reserves are fictitious or at best badly exaggerated and there are no back-up processes to protect the public, then things get out of hand.  The phrase ‘housing bubble’ should resonate  (see here, here, here and here) because it happened recently and it happened because of an out of control financial sector.  No one in the world is unaffected by that bit of bad behaviour.

Economies go through cycles of boom and bust, we believe, largely as a result of this practice, during which there are many losers and very, very few, usually very, very wealthy, winners.