How Banks Invent Money

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Title	:	How Banks Invent Money
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Fiat currency
Comment from : Jeffrey Robinson

There is nothing wrong with lending money The problem is charging interest
Comment from : Saleh Alghamdi

Fractional reserve banking
Comment from : Kamakazie

When will people realize banks are totally useless, totally unneeded in society, and have equals out there in every service they offer!
Comment from : Xxx Xxx

Cool how it sounds exactly like a Ponzi scheme!
Comment from : Xxx Xxx

90/10 is a generous assumption I recall that from a regulatory perspective, banks over a certain capital volume (I think a couple million) have no limit on their loans Adam Smith talked about 7:1, but banks today are hella bold
Comment from : Googie Gress

Its called fractional Reserve banking and has been destroying our money and our country for a really long time
Comment from : Tye Scott

Quite late, but in 2020 the fed eliminated the reserve requirments
Comment from : Fernando Espinoza

People do realize that their money is insured? Not endlessly, it cuts off at a point but insured none the less
Comment from : John Michael Chance

The "multiplier effect" only works if, on average, people can be relied upon to leave a certain percentage of their money in the bank, unused The amount of money a bank holds in reserves cannot fall below this average, or they risk bank runs by depositors and adverse clearing by other banksbrbrReally, this isn't much different than realizing when you borrow from a bank, the bank doesn't expect you not to spend it Their repayment model assumes you will spend it, and you won't have the money to pay them back immediately All a bank is doing when it engages in fractional reserves, is finding ways to make money on a portion of the money lent to them by depositors
Comment from : John Cole

What your are saying is not true Banks create money out of nothing They don't need your money to make a loan unfortunately those time are long gone The truth is, at the moment you deposit your money at the bank it isn't your money anymore The only thing that secures it, is the government insuring a certain amount of deposit, and they are only able to do so, by printing more money at the federal reserve It is all fucked up in my opinion Please read the book 'How money is created'
Comment from : FlyingTrader

GFC be like
Comment from : Harry Potter

Thatss why we are in this inflation
Comment from : clipside

Heard that before, but the way you put it it sounds exactly like a ponzi 😅
Comment from : Timotei Ferenčak

Kinda like taking whole buncha money from the people and inturn giving them just a tiny amount backbrThis system should b absolutely nullified
Comment from : Abraz Mohi ud din

Exactly my bro thanks
Comment from : Suraj Mallick

It is true that banks do "create" the money, ie, the deposits, that are in all our bank accounts But I'm sorry to say that the multiplier model that you describe is incorrect Banks don't need to wait for customers to come in and deposit anything before they make a loan The loans come first and deposits come later from the money that the loan or credit created Yes, it's an extraordinary power that modern banks have through their bank charters, but it does not necessarily mean that they can create an infinite amount of money or just pay for their company party by keystrokes on a computer There has to be a debtor with creditworthiness on the other side for this to happen
Comment from : Gustav Andersson

wrong wrong wrong Also since 2020 theres no reserve requirements
Comment from : HighThereGuys TV

I learned somthing new today "When everyone wants to get back their money back at the same time, a video coming soon" brIts so FACINATING 😅😂😂😂
Comment from : PromptJungle

This man looks to have green eye,s like money Coinsedent?LOOL
Comment from : hoi woi

The fact that our lives depend on such a magical whimsical and ethereal force
Comment from : Victorbrine

Except you don’t make money on your money they do
Comment from : Christopher Conkright

Banks has no money, it's the CUSTOMERS MONEY that they are Investing with @making PROFIT
Comment from : Gloria 808hawaii

A totally oversimplified explanationbrbrYou either don't understand money or the economy works Or you are trying to deceive people
Comment from : Mzansi 4 eva

Isn't this called Fractional Reserve Banking?
Comment from : RedPhil 🔴

Sounds kinda like a pyramid-sheme scam
Comment from : Sole Survivor

basic econ a level
Comment from : Harrison brooks

That's literally how banking works If you want to go back to trading with eggs and pigs go right ahead Good luck at the drive through 😅
Comment from : Steamzombie1838

Isn't this why the fed was invented, to prevent banks from creating too much of their own money too fast?
Comment from : Matthew Salmon

The video title should be: “Why banks should be heavily regulated as to not pull any shisty shit that will eventually lead to economic collapse”
Comment from : Mol0t0k

And somehow you are surprised at this? This is how banks have always made money, you put savings or your salary in, the bank invests that money to make money and it’s all based on the fact that it will work as long as everyone will not withdraw all of their funds simultaneously, the crash of 1929 ring a bell? You know when the banks physically closed because people were withdrawing all of their funds after it happened…
Comment from : James Mckay

At least when banks fail the people responsible are held accountable
Comment from : Shack

Please make Johnny Harris a video about Palestine and Israel conflict by doing this you will save many young kids' life
Comment from : Shawn Shoyunus

Brother that is basic GK
Comment from : DrD

Why is it a surprise that's exactly why government gives tax breaks on investing and they want the money velocity to be high
Comment from : Kumar

Most likely due to interest and real money and gold not being there
Comment from : Salampakistan

That’s how our system works and has provided the strongest, most resilient and most innovative economy in the world
Comment from : DaveT

UPDATE: The bank no longer keeps 10 of the money in the bank And, it's not considered your money anymore You effectively surrendered it to the bank when you deposited it It's the banks moneybrOwn nothing Be happy Welcome to 2023
Comment from : Lacy Prettyman

Could they at least increase it from like 10 to 25-35?
Comment from : Ray Wind

That’s less accounting/banking wizardry and more high level accounting fraud/pyramid scheme
Comment from : RainbowGlitterGang

It is called the fractional banking system,
Comment from : Joseph Fogle

Our government tells us that we can afford trillion dollar aircraft to be shot down or million dollar bullets from aircrafts They've completely lost touch of what the average person in this country is able to make and it does not look like anything like the manipulated numbers of Wall Street
Comment from : Victoria Nilsen

Cold Fusion has a great video on this
Comment from : Snakey

With a press of a key 🖥️ and a printer 🖨️ 😅brLiterally stealing from everybody in the country by devaluing the money, as they print it 💰💰💰💰💰💰💰💰💰💰💰💰
Comment from : rommelfcc

Money is MAN MADE SYSTEM to keep us poor and DEPENDENT on Corporate Slavery fiefdom
Comment from : Cultureal

Banks don't lend your savings out The english and german cental Bank have said that loanable funds is wrong
Comment from : Peter Lustig

Sorry, it’s not 10 X you did the maths wrong And didn’t allow for the 10 holdback per bank
Comment from : Pigs will be pigs

What would it be called if the average citizen did this?
Comment from : Deborah Beynon

They don’t have to hold on to 10 anymore 😬 it’s 0 since covid-19
Comment from : Pacu

The big short comes to mind
Comment from : Renato Neves

Yet you hate bitcoin
Comment from : Hendrik

Fractional reserves in the us are set to zero
Comment from : Mandeep Dhanoa

Bank can do this, and it ok But Bernie Madoff went to jail for doing the same thing
Comment from : Steve Mean

Thy call it a multiplier Well, it's just legalised pure scam
Comment from : Ratel2

I studied this in my class 12brMoney supply ChapterbrThis is also called credit creation concept
Comment from : Dhruv Chauhan

Legalised fraud
Comment from : T U

We need to push to get everyone to take their money out lol
Comment from : NY FAN

What a handsome man u r
Comment from : Farah Diba

They hold onto 15
Comment from : ppbomber

Make sure to bring up how removing glass steagall made this all worsebrAnd please do bring up how they have to hold a percentage as reserves
Comment from : Cheese

multiple bank runs can crash it allis that were we are going
Comment from : Michael Bay

When everyone wants to get their money out at the same time it is probably 1929, or there are much more pressing things to be worried about
Comment from : Spaced Out

Wow, so much idiotism here This is the reason banks are fantastic They bring "future" money to today You will realize this momey by paying the debt in the future There is a problem of many people taking their money out of banks but there are ways to avoid it and statistical models that work very well Not to mention how simplistic your model is
Comment from : Jakov Vodanović

Nobody cant loan your $btc unless u want to
Comment from : Karkinos

What magic? It's a ponzi scheme
Comment from : Dmenis

video coming soon , waiting
Comment from : Saurabh Nikhade

Infinite money glitch: As announced on March 15, 2020, the FED reduced reserve requirement ratios to zero percent effective March 26, 2020 This action eliminated reserve requirements for all depository institutionsbrbr wwwfederalreservegov/newsevents/pressreleases/monetary20200315bhtm
Comment from : Maan B

Recently Hindenburg report targeted Indian banks and multi national company about the debt problems 😂 But it was just a propaganda to destroy our banking system Now, US banks are falling Nice to see and happy brbAftermath of Western Propaganda/b
Comment from : Only Truth

They did have to keep 10 but that rule has changed and now they aren’t required to keep any of it Btc fixes this
Comment from : Adam Gray

recommended reads Murray N RothbardbrbrThe Mystery of Banking
Comment from : Campervan Sienna

Inflation
Comment from : Nope Secret

Duuuuude! Look into bitcoin Hard money vs fiat money
Comment from : CeSuntBanii

Buy bitcoin
Comment from : Declan Rogers

No bank is solvent in this system That's since 1971brBe your own bank Buy BitcoinbrAlways works, always solvent
Comment from : Jan

Y can't I do that
Comment from : IncriminatedAntelope

So are banks just pyramid schemes?
Comment from : Daniel Ariasbello

Many people are becoming digital nomads and that makes it very hard for them to invest when their country independent Maybe this could be a topic for a video?
Comment from : Ken Drew REVIEWS

Oh no Johnny This theory is heavily outdated See Bank of England, Deutsche Bundesbank, and Fed Or My early video about the Money multiplier being a myth
Comment from : Money & Macro

They created a problem Hopefully don't blame it on us
Comment from : Milo Estobar

most economists agree money multiplier effect is not how it works not really it's not entirely wrong in it's predictions but it's now how it actually works in practice you need to dig deeper
Comment from : utunga

well now I have to watch a video to differentiate between ponzi scheme and this type of system
Comment from : anrz

Damn, this is why intrest is a sin
Comment from : Suleman Mughal

In 2020, the Fed lowered the Minimum Required Reserve Rate to zero They can loan out 100 of you money In fact, most banks have loaned out about 25x their deposits
Comment from : Sarahtoshi Nakamoto

Only took you 30 years to find out what fractional reserve banking is Bruh -_-
Comment from : Marco Polo

Sounds like a "legal" Ponzi scheme
Comment from : ToritoWalker

Meh It's probably a LOT more interesting to talk about the time value of money
Comment from : James Horsfall

Quick correction, The trump admin got rid of the 10 reserve requirement so banks don't need to keep any of your money on hand
Comment from : My Cool 89

And none of that is relevant to SVB in the slightest
Comment from : Ae Norist

Money & Macro has a great video on this About 95 of the money in our economy is this M1 and M2 money Fun fact: this money supply has been rising pretty consistently and independent of inflation Showing that Friedman's inflation theory is likely incorrect
Comment from : TheWalz15