In this episode of Money Creation Explained, we are going to
cover How Banks Create Money.
Banks control the flow of money in society by deciding which
people, businesses, and institutions to lend money to. Banks
impact people and communities in many ways which makes them
very powerful in the structure of society.
Banks main method of money creation is in the forms of
lending money to others. Using a 10% factorial rule, banks
only need to have 10% of client’s funds on hand for when
clients actually want those funds. This means the money that
is represented in account holders online and paper
statements is not real money, but merely the digital
representation of the funds held in that account. The bank
is actually creating new money supply in the economy by
leveraging existing money to generate more loans which
produce interest many times over from the same original
funds being used. All the while, many banks pay close to no
interest back to their account holders so they are
essentially given free money to use to generate more money
for their bank.
IOU Notes is a peer-to-peer credit and loan platform.
Donations of $20
or
more will receive
our
Gift of Appreciation
Crypto
Currency Blockchain Coin
10 Million Max Supply Industry
leaders Bitcoin is
21 Million max supply
and Ethereum is unlimited.
_____________________
Note: IOU
Notes is a for profit company and any funds donated are not
tax deductible. We declare any donations as company revenue
and pay the applicable taxes on it.
.png){kind=spacer}
