Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world.
Also, as a depositor of bank, once you deposit money into the bank, the money is no longer yours. You are a junior creditor. When the bank goes insolvent, you become a share holder. I'll wait while you let that sink in.
Damn. I bet banks fucking love direct deposit paychecks.
Thanks for that I hadn't heard that one before but I like it
Also with the money is no longer yours bit, how come I can still withdraw it though? I agree with you on every front, but halp me understand that part. The bank going insolvent and all your money gone though and them saying tough titties I can totally understand, that scenario has probably already happened multiple times
True. Notice that putting your money in is easy, taking it out, not so much. The IRS restricts the amount you can take out at one time. I structure my withdrawals under $5,000 at a time to avoid being flagged. The idea that the money is no longer yours once it's deposited is to allow the bank to use it as leverage. Sure, you can withdraw it. But legally, the bank owns it while it's in possession of it
That includes any assets in safe deposit boxes. Buy a safe, put you valuables in it. Gold, silver, lead, documents/papers.
Nigga I do not like that.
Isn't the deposit reserve effectively 0 though?
It's actually negative.
Bond holder, you are more of a bond holder because that is secured debt. You get fdic insurance.
Now, Part of why inflation has run rampant, is because the fed does not want you to put your money in the bank, because it had to bail out accounts in the savings and loan crisis. But the inflation has hit critical levels. Something will give, but the fed is out of options.
the fed is out of options
They are out of sane options. Knowing the Fed is a criminal operation, they can demonetize the dollar and switch to a Central Bank Digital Currency (CBDC) then they can enforce all kinds of draconian measures. They can also go to war and force the sale of commodities in dollars. None of these are off the table. The Fed is a trapped animal and is very dangerous.
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