I can remember my father telling stories of finding money after my
great-grandmother passed away. She was so terrified of using banks and
the
threat of a depression that she hoarded the family's money in secret
stashes throughout the house. I used to chalk this up to the
old-Italian
superstitious ways of my elders. Now, as an adult, I am starting to get
the drift...
In a general sense, we all keep our money
in banks to keep it safe? Right?! We don't want someone to be able to
break into our homes and steal our stashes of cash! So, to ease our
minds, we give it to the bank to hold on to it for us.
Hmmmmmm...... (I'm thinking) How safe can your money really be when you put it into a bank?
Don't
be fooled. Banks are not giant piggy-banks or lock-boxes. Banks are
businesses. And just like any other business in the world, banks are
out to make a profit. More importantly, like every other business in the
world, banks also risk failing.
Know this... When
your account balance says $5,000, there isn't some drawer inside of that
bank with your name on it that has your five grand inside. When you
make a deposit, that money is now considered an asset of the bank, and
your bank balance only reflects the amount the bank owes you as the
depositor.
Now that the banks own your money, they
don't just leave it sitting in a drawer somewhere for your later
retrieval. Banks are only required to keep a portion of your cash on
hand to be able to fill your demand for withdraws. They lend out the
rest of your money to other clients - Which is no big deal. Right?! We
don't seem to mind that banks are lending out our money to make a
profit.
But what if I told you that banks are legally allowed to lend out
more money than they have on deposit?
Yes, you heard that right. Banks are loaning out more money than they have. Its called fractional reserve lending.
Julian Websdale, author of
Understanding the Illusion of Money and the Economic System Construct, used
following diagram to explain this practice.
Now, ask yourself again.... How safe is
your money when you put it in a bank? What happens to your money if the
borrowers your bank choose to loan to, fail to repay?
As crazy as it may sound, this practice, called fractional reserve banking, is currently used in all countries of the world.
Websdale believes such banking practices has allowed banking families to attain
high power and great fortunes, while the rest of the world is left enslaved to foot the bill.
Think about it.
We
all know how it works. In order to get a bank loan, you must put up
some kind of asset for collateral, like your car, house, or business.
If you are unable to fully repay the loan plus interest, the bank gains
ownership of that asset.
And who borrows money from the banks? Damn near everyone.
From
individuals, to businesses, to entire governments, everyone is
borrowing from the banks. And when loans go unpaid, banks are taking
over land, homes, and businesses. According to Websdale, some of these
banks are already controlling some of the poorest countries of the
world.
It is easy to recognize how banks could potentially take over the world, considering that borrowing has become a universal norm.
Reference: Websdale, J. (July 18, 2014). Understanding the Illusion of Money and the Economic Construct. The Mind Unleashed. Retrieved from: http://themindunleashed.org/2014/07/understanding-illusion-money-economic-system-construct.html