M
mike in co
Guest
have you ever wonder how or why a bank would give you a $15 toaster for putting $25 in thier bank. why they would give you $25/50/100 for putting $100 in an account. i mean, it sounds insane, poor business practice, right ??
how can they ever recover thier cost, loaning out your $100?? the interest just is not there.
so why do they do it ??
its called fractional banking.
when a bank starts up and thru thier life, they are allowed to loan out a fraction of thier assets. in the begining , the banks had to keep 3% of thier assets on hand in cash.( this percent may have changed recently..but in the end it does not matter).
so when you took in $100, you could loan out $97, with $3 in cash reserve.....that was the intent of the law. accountants and greedy bankers took to reading the rule a little different.
thier view is simple...if they take in $3, they can loan out $97....
anyone see an issue with this practice ??
they CREATED the $97 out of thin air !!!!
the bank does not loan out cash, they loan out credit....but it has the net effect of CREATING MONEY that the federal reserve banks did not request from the government.
the total us retail/personal/business debt EXCEEDS the money issued by the fed res banks...by a lot.....about 97% ??////well that is more like 3233%.
so while our banking system was set up correctly, the powers that run it, like the powers that are suppose to be running our government, succumbed to money.
like our government spends money it does not have, the retail banks create money they do not have.
just more food for thought....
did you load some ammo today...for the future ??
mike in co
how can they ever recover thier cost, loaning out your $100?? the interest just is not there.
so why do they do it ??
its called fractional banking.
when a bank starts up and thru thier life, they are allowed to loan out a fraction of thier assets. in the begining , the banks had to keep 3% of thier assets on hand in cash.( this percent may have changed recently..but in the end it does not matter).
so when you took in $100, you could loan out $97, with $3 in cash reserve.....that was the intent of the law. accountants and greedy bankers took to reading the rule a little different.
thier view is simple...if they take in $3, they can loan out $97....
anyone see an issue with this practice ??
they CREATED the $97 out of thin air !!!!
the bank does not loan out cash, they loan out credit....but it has the net effect of CREATING MONEY that the federal reserve banks did not request from the government.
the total us retail/personal/business debt EXCEEDS the money issued by the fed res banks...by a lot.....about 97% ??////well that is more like 3233%.
so while our banking system was set up correctly, the powers that run it, like the powers that are suppose to be running our government, succumbed to money.
like our government spends money it does not have, the retail banks create money they do not have.
just more food for thought....
did you load some ammo today...for the future ??
mike in co
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