February 6, 2008
Make Money - Don't Earn It!
If you don't know how banks create money out of thin air, there's no better time than now to learn. Tomorrow you'll be older and you still won't know, if you don't find out today!
I found Kalinda Rose Stevenson's blog recently and was blown away. If you'd like more detail on the content in the video, read the article I stumbled upon, "How Banks Make Money Out of Thin Air." I subsequently met Dr. Stevenson through email and learned of this video.
I very much want to hear your thoughts on this. Please enter your comments below (don't email me instead! though you may email me also).
2 Comments on Make Money - Don't Earn It! »
February 9, 2008
JoeTaxpayer @ 11:23 am:
Hmmmm, quite the you tube-ish video to describe the fractional reserve system.
Wiki has more details on this, http://en.wikipedia.org/wiki/Fractional_reserve_banking
Butthe point the video's author failed to make, that I'm sure you didn't miss is this; even at the 10% requirement, the bank will have $100 on deposit paying say 5% interest, but $900 they lend out and charge, well, more. Maybe 6-7%, maybe 10%. So their return on your money is not the 1-3% extra, it's more like 50% or greater.
But interesting as this is, there is little means for the consumer to benefit from this knowledge. The opposite of borrowing for the consumer is to be debt free, as you advocate, but no way to really turn the tables of the banks.
JOE
Lin Ennis @ 11:41 am:
Thanks for the wiki link Joe. I'll look into it!