Name: 5 Things About Money That Banks Don't Want You To Know
Uploaded: 2021-10-21T17:40:30.000Z
Duration: 10 min 46 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Past simple

  Andrew Jackson once said: If the people only

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

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

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

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

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 debt  One 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

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

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

  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

  But in the modern world, it works in a different

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.

  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

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

  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.

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

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 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!

  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

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

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

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

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

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