Thirteen families effectively control the central banks of all the hard-currency countries. These "controlbanks" all practice FRACTIONAL RESERVE BANKING, which is perfectly legal in the US. Fractionalreserve banking means that the bank is only required to hold on hand the small fraction of money (5%) that is needed to cover the fraction of deposits likely to be drawn upon and cashed. Moneys depositedin accounts go into a reserve upon which credit can be issued. In the US credit can be issued to seventimes the reserve, in international banks (off shore establishments) twenty times the reserve can be issued as credit. It is imp[ortant to understand this concept in order to understand the larger picture 

Article here http://www.nogw.com/download/2006_13_families_central_banks..pdf