True mechanics of Banks
The banking system - the insularity. Get out of it, or run away - it is impossible. All the money that has ever been withdrawn from the bank - they always come back. Even if you personally do not take credits or put money on deposit, you can still interact with them through other people. How?
Money - the blood of the economy. They are exchanged for goods or services, settling in the pockets of private entrepreneurs and organizations. In Russia, according to the law, all organizations, which working with cash and count, are obliged to take their daily revenues above a certain limit of the deposit to the bank (Bank of Russia of 11.03.2014 №3210-V "On the order of cash operations by legal entities ... ")
What is mean? When you have received salary and want to buy a TV, where money kept by the employer? In the bank of course. As it should be. So, you come to bank, get cash from count and.. buy a TV on a large electronics center. By the end of the day all your money again fall into the bank! And sometimes money does not leave the bank, if purchase is made by wire transfer.
Money comes to the people for temporary use, hold in their hands, and return back to bank. In large scale systems (hundreds of banks and millions of people) money transfer process turns into a huge, global mishmash of money. Cash transferred from bank to bank and used them for the payment of salaries, the issuance of deposits or credits in their cash departments to other people. After issuance, cash again make a little trip and deposited in another bank. And the money from another bank - in your. Rotation turns an endless.
But that is not all! The bank creates money from the air. He gives credit to the amount many times greater than the amount of real cash into his safe deposit boxes, sometimes 10 times or more times. Scientifically it is called a credit multiplier effect. In one paper ruble (the dollar, the yuan), accounting for 10 digital. If at least 1/10 of the people would come at the same time pick up your savings, then they will have nothing to pay.. Seems, like a pyramid scheme, right?
But we go even further, to what even the bank workers do not know. Exists a widespread belief that a bank lends to people, giving them their money And asks due to their use percentage. Exists a widespread belief that a bank lends to people, giving them their money And asks due to their use percentage. But it is not true, are at least not in my country (Russia).
When Russian people comes to Bank and give a promissory note (loan agreement), they are loan the bank, NOT bank loan man. Why? Because received loan agreement from person, a commercial bank uses in the country's central bank as collateral for the money.
Received loan agreement from person, a commercial bank uses the country's central bank for obtaining the money, relatively speaking, which bank gives to man. Who does not believe - let check the financial statements of banks. Any loan agreement is written in the DEBT field, which means that the customer gives the money to the bank, NOT bank to the customer also accrues percent and obligating them to return. This is a biggest lie in the world....
People feed parasitic banking system, which not only creates money from the air, but directly cheating them with the credit mechanism, dooming to eternal bondage of debt, pay which - it is impossible. Even despite the fact that the cash in the safes of the bank is always in the tens of times less than the zeros in electronic accounts of its depositors - the banking system works. It is a fact. Why? Just because people trust to them, while they are draws images in their minds, and also because people dont have analog mechanism, which can be banking competitor. Dont have before, but times very soon changed.
P.S.: It is one little part from my book about my vision to the old and new world economic systems. I will continue public my materials for people, and im hope, they are need it.