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  • Andrew Jackson once said: If the people only

  • understood the rank injustice of our money and banking system, there would be a revolution

  • by morning."

  • That's what he said way before the federal reserve was creating because, since the creation

  • of the fed, the banking system has changed dramatically and is favoring the rich even

  • more.

  • The problem is that most people don't understand how the system works, they don't know how

  • the money is created, they don't know how the fed works, so only a small minority actually

  • benefits from this system at the expense of others.

  • Or as Henry Ford said "It is well enough that people of the nation do not understand our

  • banking and monetary system, for if they did, I believe there would be a revolution before

  • tomorrow morning."

  • So let's find out what exactly banks don't want you to know?

  • What are they hiding?

  • And what you should know to profit from the system.

  • If you are ready, give this video a thumbs up, and let's dive in.

  • 
 


  • All money is debtOne of the fascinating things about people

  • is that, We spend our entire life looking for jobs,

  • working hard, building up businesses, all in hopes of making more money.

  • And yet, most of us don't really understand where does the money come from?

  • Why does this piece of paper is money in the first place, and not something else!

  • Most importantly, it's a piece of paper with some pictures and numbers which means someone

  • out there is printing it!

  • It's certainly not growing on the trees or falling out of the sky!

  • Before you click away because you think you know the answer, let me clarify that it's

  • not the government.

  • In fact, the government is borrowing money exactly like you!

  • And trust me, it's in much bigger debt than you could possibly imagine!

  • it sounds strange because if it's not the government who prints the money, then who

  • has the power to do that

  • As always, the government needs to build bridges,

  • schools and hospitals in order to sustain the country but all of that requires money.

  • In the past, it was simple, Gold and silver were money, so you either earn it, or borrow

  • it from someone else as a loan!

  • But in the modern world, it works in a different

  • way.

  • When the government needs money, it borrows it from the Federal Reserves as a loan with

  • interest on it, and where does the federal reserve take the money.

  • It creates it out of ink and paper.

  • Then the government uses that money to build

  • schools, hospitals, and bridges, that's one of the ways how money gets into the economy.

  • The people who receive the money from the government deposit them in a bank, and then

  • the bank lends it to someone else, and that's how it spreads all around the world!

  • But that's only how a small fraction of money

  • is created.

  • Around 95% of money is nothing but digits in the computers created by the banks.

  • When you deposit your money into the bank,

  • the bank doesn't simply keep your money in the safe but rather lends it to someone else

  • at higher interest because that's how banks make money.

  • But then, why does your bank account says that your money is still there in the bank

  • and you can take it out anytime you want

  • Because Banks are allowed to lend 90% of your deposited money and keep only 10 percent in

  • case you want some of your money back, at the same time, keep your account as if your

  • money is still there!

  • Let's say you deposit 100 dollars in the bank,

  • the bank will lend 90 dollars out of it, but at the same time, it will create another 90

  • to show you that your 100 dollars are still there in the bank!

  • Then those 90 dollars will end up in another bank, and they will keep 10% of it and lend

  • the rest, creating even more money! and so on and forth, until that 100 dollars that

  • were initially created will turn into a thousand dollars.

  • If not more than that!

  • That's how most of the money is created; that's why 95% of our money doesn't exist physically!

  • 
 


  • And the strangest part of this system is that the money that was printed out in the first

  • place was given as a loan to the banks and the government.

  • In other words, the government or the banks have to pay back more money than the amount

  • of money that exists in the system, which means that debt simply can never be paid back!

  • Let's say, for example, there isn't any money

  • in the system yet.

  • You go out there and ask the federal reserve (Fed) to loan you 10 dollars, it says sure,

  • but you must pay it back with 10% interest, which means you have to pay back 11 dollars.

  • Now the question is, where will you get the extra 1 dollar if only 10 dollars were created

  • in the first place.

  • The answer is Nowhere!

  • 
  In short, we use these pieces of paper as

  • money because we trust this system, but in reality, it's not really backed by anything,

  • so invest your money in real assets such as stocks, Gold or real estate!

  • 
 


  • But the question is

  • 2.

  • Who owns the fed?

  • To answer that question, we have to go back

  • in time and find out how the fed was created in the first place

  • The United States wasn't always such a great financial power.

  • Back in the 19th, it was a country of turmoil.

  • The civil war almost destroyed the country, and the financial market wasn't working properly.

  • The US didn't even have a Central Bank to manage financial crises as many European countries

  • did back then.

  • In 1906 one of the famous bankers wanted to make a fortune by pushing United Copper shares

  • to rise and force short sellers to buy his shares to exist their positions.

  • But his plan backfired as the short sellers found a different source to buy United copper

  • shares.

  • That move bankrupted the company and multiple other banks.

  • As the news of bankruptcy spread, depositors rushed to the banks to withdraw their savings.

  • As the banks run out of cash, they stopped lending money to their depositors and went

  • bankrupt one after another.

  • The stock market crashed to an all-time low.

  • There wasn't a central bank back then to restore depositors' faith in the banks, so wall street

  • turned to JP Morgan.

  • He deposited a significant junk of his wealth into some of these banks to restore public

  • faith in the banking system and convinced other wealthy bankers to do the same, and

  • saved the economy from sliding into a crisis that god knows how long it would last.

  • That's when the US realized that it couldn't rely on the good faith of the bankers.

  • It had to create a central bank that would step in such circumstances.

  • But it wasn't easy since it involved too many opposing parties, from politicians who represented

  • their people to wall street bankers to other wealthy individuals.

  • Over a hundred wealthiest Americans met in Jekyll Island in Georgia and decided how the

  • fed was going to work, and in 1913, the fed was finally created

  • But it's not just one bank.

  • It consists of 12 banks that are spread across the country.

  • And each bank is required to keep 6 percent of its capital in the regional reserve bank,

  • and in return, they own shares in that bank.

  • Which means the fed is simply owned by the rest of the banks in the country.

  • It sounds as if the system couldn't be more rigged since the big banks control the only

  • bank thats the source of the dollar but every major bank in the US is a public company which

  • means by buying their stock, you turn into one of the owners of these banks and indirectly

  • and an owner of the fed.

  • 
 


  • 3.

  • your bank is not your financial planner

  • What most people don't realize is that banks are not there to act in your best interest.

  • Their purpose isn't to help you become finically free or get the best deals or solve your financial

  • difficulties.

  • Banks are profitable corporations who are accountants to their shareholders and are

  • obligated to make a profit, so, like any other business, they will act in their best interest

  • by selling your products and services that benefit them and not you.

  • Yes, your interests might align sometimes but not always.

  • So whenever a bank suggests you to do something, just because the bank teller is wearing a

  • nice suit and is very kind to you doesn't mean he is giving you the best advice possible.

  • Before trying to sell that product to you, every bank teller has gone through extensive

  • training to learn to convince to pay for that service.

  • So, think for yourself, don't decide to accept anything unless you sleep on it.

  • Make sure to compare the rates always with other banks, don't let yourself for a moment

  • be manipulated how nicely they treat you because that could end up costing you a fortune in

  • the long run.

  • 
 4.

  • the wealthier you are, the less banks charge you 

  • The main purpose of banks should be to take

  • money from those who have extra money and lend it to those who need it.

  • That's how banks emerged in the first place.

  • However, the financial system has evolved since then

  • When you live paycheck to paycheck, you are not valuable to the banks.

  • They barely can make any money out of you.

  • At best, they can provide you with a small mortgage and a credit card, so you are not

  • a valuable customer.

  • However, when you are a billionaire, for example, the banks would provide you much more favorable

  • terms in hopes that you will stash your money in their banks or choose their banks as the

  • primary bank for your businesses.

  • You can easily see that in the montage rates that banks usually provide to ultra-rich people

  • which are much lower than the average rate

  • 
 5.

  • A bank is a place to park your money and not invest 

  • Some people look at banks and get frustrated

  • with their low rates.

  • Today, it's almost impossible to get even a 1 percent rate on your money if you decide

  • to invest in fixed deposits.

  • But that hasn't always been the case.

  • For much of history, lending money and collecting interest has been a profitable business, but

  • not anymore since money today doesn't hold any intrinsic value, so stop treating banks

  • as investment tools and look at them as institutions to manage your money.

  • If you still so desperately want to keep your money in a bank, try buying their stocks.

  • Goldman sacks, for example, pays a 2.1 percent dividend rate, that's much higher than what

  • they pay in fixed deposit rates.

  • On top of that, you will benefit from the rise of the stock and the greatest part is

  • that you are not going to just keep your money in a bank but you will be one of the owners

  • of that bank.

  • 
 


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  • And now give this video the thumbs up that it deserves, and make sure to subscribe if

  • you haven't done that yet.

  • Thanks for watching and until next.

Andrew Jackson once said: If the people only

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A2 bank system created government interest lend

5 Things About Money That Banks Don't Want You To Know

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    Summer posted on 2021/10/21
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