So in step 2 the lady deposits 10000 into her bank and on the base of that they can issue a loan of 9000. So where does the bank put the 10000 she deposited ? In her account right but then what about the 1000 reserve out of that 10000 ?
@omar19121 The account of someone in a bank is no real, it is only the PROMISE of the bank to pay you that amount. So in reality the bank has 0 of the money you deposited in your account, has 9000 that it lent out and 1000 in reserve.
@omar19121 When you want to take out your 10000 dollars the bank takes it from the reserves and the next loan to be paid back does not go to another loan but remains in the reserve to make up what you too out. If the reserve is too little to satisfy the amount being withdrawn (really rare) then the bank gets a loan from another bank or the central bank totaling your amount to pay you.
The debt (dollars) can be equilibrated by spreading dollar to other countries. I mean create a global currency system where more and more countries share the same currency.
according to modern money mechanics (FED info on money creation) their math on the process is wrong. There is no money available when the $10,000 check is returned to te original bank for repayment in this example. According to MMM, $10,000 deposited at fed (high power money) would allow the firt loan creation of $9,000. But the original $10,000 would remain in the vault for a total of $19,000 (10k original and 9k created) in stage #1
So this 9 : 1 ratio is incorrect? it's just 1.9 : 1? step 2 shows the 9 : 1 really is 9 : 1. wikipedia also confirms that. The fact that the very first deposit (after the 1111.12) can't be withdrawn, is also true for the very last person to withdraw their money.
He will get the money back, but it's not actually the money he gave in the first place. It's 9:1 devalued money. If the guy in step 1 would redeem it's money he would get his 10,000 back, now it only cost the bank 1111.12.
this is insane. The deposit should not count as a reserve since it is not physical currency!!!
tacticalmastermind 4 months ago
So in step 2 the lady deposits 10000 into her bank and on the base of that they can issue a loan of 9000. So where does the bank put the 10000 she deposited ? In her account right but then what about the 1000 reserve out of that 10000 ?
omar19121 11 months ago
@omar19121 The account of someone in a bank is no real, it is only the PROMISE of the bank to pay you that amount. So in reality the bank has 0 of the money you deposited in your account, has 9000 that it lent out and 1000 in reserve.
tacticalmastermind 4 months ago
@omar19121 When you want to take out your 10000 dollars the bank takes it from the reserves and the next loan to be paid back does not go to another loan but remains in the reserve to make up what you too out. If the reserve is too little to satisfy the amount being withdrawn (really rare) then the bank gets a loan from another bank or the central bank totaling your amount to pay you.
tacticalmastermind 4 months ago
to destroy the illuminati and banking system, watch "the matrix" and "fight club" and "capitalism" etc... it'll give you an idea.
KilluminatiCHE 1 year ago
The debt (dollars) can be equilibrated by spreading dollar to other countries. I mean create a global currency system where more and more countries share the same currency.
mcamoran 1 year ago
according to modern money mechanics (FED info on money creation) their math on the process is wrong. There is no money available when the $10,000 check is returned to te original bank for repayment in this example. According to MMM, $10,000 deposited at fed (high power money) would allow the firt loan creation of $9,000. But the original $10,000 would remain in the vault for a total of $19,000 (10k original and 9k created) in stage #1
chbs4122 1 year ago
@chbs4122
So this 9 : 1 ratio is incorrect? it's just 1.9 : 1? step 2 shows the 9 : 1 really is 9 : 1. wikipedia also confirms that. The fact that the very first deposit (after the 1111.12) can't be withdrawn, is also true for the very last person to withdraw their money.
He will get the money back, but it's not actually the money he gave in the first place. It's 9:1 devalued money. If the guy in step 1 would redeem it's money he would get his 10,000 back, now it only cost the bank 1111.12.
wafelijzerstekker 1 year ago
ha ha a 4:50
goodluckpeace44 1 year ago
Very nice set of videos, solid explanations and good examples.
28Paco 3 years ago
ecruac fo sey
goodluckpeace44 1 year ago