How do banks actually create money? We explain

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  • Опубліковано 18 чер 2024

КОМЕНТАРІ • 71

  • @Mr1159pm
    @Mr1159pm Рік тому +128

    I'm always amazed that this is legal.

    • @pwp8737
      @pwp8737 11 місяців тому +48

      why not? extortion is illegal, but legal when the state calls it taxation. Kidnapping is illegal, but legal when it's called the draft. Killing is illegal, but legal when it's called a war. You get the idea.

    • @alberthoffman5297
      @alberthoffman5297 9 місяців тому +16

      because its not this simple. we have regulations in place to make sure banks dont loan too much or depositors take too much money away

    • @daveevad3524
      @daveevad3524 9 місяців тому +7

      ​@@alberthoffman5297
      Afaik, bank needs to have around 10% of the total asset they supposedly have, physically. That's not a lot...

    • @bastardowl
      @bastardowl 8 місяців тому +4

      Go live in a society where it doesn't happen.

    • @user-hp5bc5cy2l
      @user-hp5bc5cy2l 7 місяців тому

      @@daveevad3524 its a bit above 13% they like it to be around but below 20 yet above 10. 13 seems to be the usual load, so 15% because no one wants a bank run.

  • @LupeBaptista
    @LupeBaptista 5 місяців тому +55

    The failure of banks in addition to global economic crisis has left the markets in shreds. I'm at crossroads deciding whether to hold on cash or put money in the stock market, and it's uneasy for me to not panic after a recent awful divorce, my goal is to retire with $3m

    • @valentinaarrelaro
      @valentinaarrelaro 5 місяців тому +2

      investments are subjected to risk, I'd suggest a well experience advisor if you choose to invest wisely! sorry to hear about your divorce

    • @HaroldsTKO
      @HaroldsTKO 5 місяців тому +3

      @maria_casey much more info needed please... we sometimes fail to realize how useful an extra source of income can be until crisis

    • @fromthebirchwood
      @fromthebirchwood 5 місяців тому +2

      I find this insightful, curiously inputted ''Theresa Leigh Detrick'' on the web and surprisingly came across her consulting page, skimmed through her credentials and got to schedule a call session, she appears to be a first rate professional

  • @RafaelBergmans
    @RafaelBergmans 8 місяців тому +10

    printet out off thin air is the basic terms

  • @potapotapotapotapotapota
    @potapotapotapotapotapota Рік тому +11

    more of this please

  • @Elliemis
    @Elliemis 10 місяців тому +9

    It turns out that the bank extended loans in excess of its actual reserves.

  • @christiangiardina4541
    @christiangiardina4541 6 місяців тому +4

    ...so basically they could give that loan for free but i have to work twice as much to pay It?😭

  • @RebeccaEWebber
    @RebeccaEWebber Рік тому +8

    Wild.

  • @alienkishorekumar
    @alienkishorekumar Рік тому +30

    Thin air

  • @bethswann8289
    @bethswann8289 Рік тому +12

    me, watching this video as a bank employee :0

  • @onlyagreeingsometimes
    @onlyagreeingsometimes Місяць тому +1

    After those ships of gold had been taken by pirates they told everyone the own them with a sheet of paper rather than show them the gold was missing ☠️ now they'll do it with digital gold and I wont say what they'll do. Its deeper than explained 🙄

  • @FinancialMood
    @FinancialMood 3 місяці тому

    How did you do the video? Witch editor do u use?

  • @UZEF81music
    @UZEF81music 11 місяців тому +1

    My city may face some trouble in future and to make people safe you have to remove the tonns of Gold of the mosque from Aligarh.

  • @ryantan8666
    @ryantan8666 Рік тому +6

    Fake news. The reserve requirement in the US has been exactly zero since March 2020

    • @duncanhw
      @duncanhw Рік тому +5

      Many countries (UK, Sweden, Australia) have 0% reserve requirement. That doesnt mean they or the US banks can create money freely. They have capital requirements instead.

    • @aldursys
      @aldursys 11 місяців тому

      @@duncanhw Capital is nothing more than upgraded deposits. Deposits is what you use to buy bank capital. More deposits = more demand for bank capital. Banks create their own capital as well.

    • @golpher12
      @golpher12 4 місяці тому

      I didn't think there was a reserve requirement ever since Nixon ?

  • @HN-ol7oz
    @HN-ol7oz Рік тому +11

    How the bank work in USA

    • @toibrayaz2451
      @toibrayaz2451 9 місяців тому +2

      Ot uuu sss aaa 😂 whole world Banks

  • @rajadon2071
    @rajadon2071 6 місяців тому +1

    Illegal weapon

  • @thePot_
    @thePot_ 18 днів тому +2

    It's not known as "fractional reserve banking", totally wrong. It's credit money creation. Fractional reserve banking is a wrong old academic theory, that has nothing to do with reality

  • @saadsohail4690
    @saadsohail4690 2 місяці тому +1

    please someone educate me, why is this bad for the general man in society?

  • @varunjaiswal8981
    @varunjaiswal8981 5 місяців тому +4

    Credit creation is literally money from nothing!

  • @souvanikmajhi2945
    @souvanikmajhi2945 5 місяців тому +1

    This is credit creation ,not fractional reserve

    • @velhocarpinteiro7465
      @velhocarpinteiro7465 День тому

      Credit ''creation''? Racketeering or fraud would be far more accurate.

  • @tudorioan5104
    @tudorioan5104 Рік тому +1

    Ok, why is so hard to get the original video of this ?! ...wanna keep more views away ?!? 😆
    ...link it somewhere easy to get!!

  • @tobehonest7541
    @tobehonest7541 Рік тому +1

    Its all about the Benjamins

  • @michaelstapelberg7751
    @michaelstapelberg7751 11 місяців тому +1

    and thus started the tory con! stop making loopholes solve the world

  • @kakatito4651
    @kakatito4651 Рік тому

    Hello❤❤

  • @benizjammmin
    @benizjammmin 2 місяці тому

    So what happens if everyone wants to cash out there gold all at once? 🤨

    • @awehellnah
      @awehellnah Місяць тому

      they hope you don’t

    • @knowideas7184
      @knowideas7184 25 днів тому +1

      Historically if this happened or was about to happen then war would magically break out…

    • @NoOneAM2
      @NoOneAM2 4 дні тому

      that's what the entire system is based upon, that everyone wouldn't.

  • @hectorcarranza5870
    @hectorcarranza5870 Рік тому

    Cash not money or currency

  • @luckyluke1232
    @luckyluke1232 Рік тому +3

    Money and currency isn't the same thing, only gold and silver is money.

    • @handlethisnut
      @handlethisnut Рік тому +3

      Prove it

    • @luckyluke1232
      @luckyluke1232 Рік тому

      @@handlethisnut Prove what? Money is gold and silver, has been used for thousand of years... Currency is just to transact easier. Banks don't create money lol all they do is print paper or now type digits in a computer

    • @luckyluke1232
      @luckyluke1232 Рік тому +1

      @@Dimitris_Balf I think you're confused, currency and money aren't the same thing.

    • @raptorjesus6398
      @raptorjesus6398 Рік тому +3

      Gold and silver are commodities, not money

    • @MicahFoxxMusic
      @MicahFoxxMusic Рік тому +3

      “In its strict technical sense, “money” means coined metal, usually gold or silver, upon which the government stamp has been impressed to indicate its value. In its more popular sense, “money” means any currency, tokens, banknotes, or other circulating medium in general use as the representative of value.”

  • @Thefaslife
    @Thefaslife 4 місяці тому +1

    Propaganda

  • @PEPSIMAANNN
    @PEPSIMAANNN 4 місяці тому

    Fun fact the knights Templar technically created banking

  • @frankcarlos6762
    @frankcarlos6762 9 місяців тому

    That is not money 💴 is currency, money and currency are different

  • @MicahFoxxMusic
    @MicahFoxxMusic Рік тому +2

    👎👎