Fractional Reserve Banking Explained

If you deposit $10,000, the bank used to be required to set aside 10% to cover withdrawals. That would be $1,000 they save. But they loan out or invest the other 90% or $9,000.

So in effect, you LOANED the bank $10,000 and they in turned Loan YOUR money out to others.

So if someone came in for a car loan they would loan them your $9,000 and they would get paid the interest.

The person who buys the car pays for it with YOUR $9,000 and it may go to the same bank or a different bank, either way, it is all part of the Central Banking Fraudulent System.

This $9,000 is treated as a new Deposit. So what happens is the bank loans 90% of that out to another borrower.

This process continues until that initial $10,000 you loaned the bank, became $100,000.

The money created from your loan – was $90,000.

That is one way money is created in the Fraudulent Fractional Federal Reserve Banking System.

Do people not see how this is fraud and how this is a set up for all banks to eventually fail if you truly make these loans?

If they are only keeping 10% and the economy goes sour and people want to withdraw their money to invest in physical assets such as Gold or Silver, the banks won’t have that money. They won’t be able to give it to you.

Then when the loans go bad – the banks are insolvent.

That’s Fractional Reserve Banking in a Nutshell.

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Source: https://www.facebook.com/reel/259831643733255

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