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How Banks Create Money

Five Minute Finance 353 views

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Thanks
Comment from : @sophiependragon2467

The US economy relies on ongoing credit and debt generation for sustenance The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American Meanwhile, foreign nations continue to desire the US dollar, despite their own economies facing significant challenges, some even worse than that of the US This situation raises concerns about who will ultimately bear the consequences of these economic dynamics
Comment from : @CalebMartin2U

Great analysis, thank you! A bit off-topic, but I wanted to ask: I have a okx wallet with usd, and I have the seed phrase: (proof inner hobby bounce blouse able donate virtual luggage cart morning ticket)What's the best way to send them to Binance?
Comment from : @OresteZubak-t5t

0:25 This is incorrect Banks ido not/i lend out depositors money Deposits ido not/i create loans There's a great article on the subject by Professor Richard J Murphy on Tax Research Org called i'Banks don’t lend out depositors’ money'/i
Comment from : @KernitTheFont

this is wrong
Comment from : @clarke6808

It's insane arithmetic to sum up 10k of deposit with 9k of debt and conclude that we have 19k in economicbrLet's imagine we don't have a bank in the equation: I've just lent 10k to my friend He can use 10k money (just like credit) while I have his liability to return them (just like a deposit) Do we have 20k in total now?
Comment from : @yuriygrief7986

Indeed
Comment from : @worldfamous260dewitt

So the Federal Reserve is running a Ponzi scheme that puts our nation continuously in debt, got it
Comment from : @gregoryfahy

Fun fact normal banks brands don’t print money but the central banks like Bank of England
Comment from : @AmoreMemes

amazing content
Comment from : @ericalmeida4917

So there is no money in my account in reality?
Comment from : @daryushowell6530

Why not just create it all lol
Comment from : @Dinheirometro

Banks take our money loan it out and give us a very small portion of it
Comment from : @TheKylweese

“You can print money but you can’t print wealth”
Comment from : @KAPUSIJAPAN

I heard the Federal Deposit Insurance Corporation does not own any money, and that's why we pay it all back in taxes
Comment from : @Mario_Giovanelli

Ponzi type beat
Comment from : @Capybased

The banks make money out of nothing and that is why fractional reserve banking is the biggest scam in human history Also, your money in the bank belongs to the bank, you are a creditor The next time the banks get into trouble they will use a bail in, meaning that you are a creditor and will lose your money to pay off the banks debts This is the ultimate form of control and we are all slaves to this terrible corrupt system
Comment from : @rewind1960

wrong!! banks cant lend other peoples money
Comment from : @johnb56112

Nice work if you can get itmodern day alchemists banks are While we are stuck in the rat race
Comment from : @randyrhodes7137

I'd like to know how banks are using our deposited money now that Glass-Steagall was repealed (This arguably caused the 2008 crash) Are they investing it in risky ventures such as the stock market?
Comment from : @dogchaser520

Hi my name's chanathip naseekun
Comment from : @chanatip882

one of the best videos! thanks a lot
Comment from : @david2am

Waheguruji Ka KhalsabrWaheguruji Ki Fateh
Comment from : @waheguru05

I would really appreciate for all banks in United States to follow new account opening procedures in terms of ID acceptance It has to fair for all people of all faiths You cannot give preferential treatment to a particular race The primary ID requirements have to be same for all peoplebrThe secondary ID’s should be state issued IDs or Visa cards issued in the US or outside Proof of address must be provided for non US citizens for 0:01 government monitoring purpose to prevent any illegal br0:01 0:01 activity in United States of America Stricter monitoring policies must be implemented when accepting cash deposits Also please for OFAC countries I want that list to extend to other countries who are creating problems in United States I want the Federal Reserve Board as well as Miss Warren and the head of the United States banking system to prevent any losses or damage Stricter OSHA policies need to be implanted This is an Urgent Matter and needs to be taken care immediately I am extremely disheartened by the fact that I was sent to Wells Fargo for a reason and have been exposed to such unholy behavior by the employees as well as outside individuals who made my life miserable I have suffered mental abuse I have been helping the Banks for so many years starting from Bank of America, Chase Bank and Wells Fargo I have also worked as a Realtor starting with Metro Brokers, ZipRealty and the worst Redfin
Comment from : @waheguru05

The bank setup businesses using your deposit money's to investment to the world's creates the stocks or using your retirement funds to the bank and returns back just a little interest not even the bank the earnings of 1 at all the banks and government gamblers to each businesses together and lies to your country's against to rach other's only?!
Comment from : @Elsang-Ngnb9iv

So pretty much 95 of the money has to be repayed with interests at some point and the economy of goods and services lives on a perpetual mortgaed money flow, we could only hope to capture some through salaries, profits, leases and dividends and help sustain it through savings that are deposited in the bank so the financial sphere doesn't crack brWhy the banks own the money and not the workers and entrepreneurs?
Comment from : @DistributistHound

This is incorrect Loans are - NOT - created by using the funds others have deposited in the bank This is a MYTH
Comment from : @richiedubs1062

I still don't see the creation of money So the individual is loaning the money to the bank I don't see that money doing double work only getting loaned back out I don't see twice the money out there you have no money till you use it at that point doesn't the bank need to have the money back from whom they loaned it to for you to use?
Comment from : @H-_9

The explanation video about banking is very clear, helpful and increases our knowledge Thank's 🙏🙏🙏
Comment from : @irmansyah4022

But when anyone elce does it, they get arrested and charged like Sam Bankman Fried from FTX id say its time to arrest the real scammers
Comment from : @user-yx9jm9sp2y

This video is the neo classical view on banking, this is not how banking actually works Banks create loans in a debt credit relationship, the bank creates money out of nothing but once the money is payed back the money is destroyed
Comment from : @Zularus

They done lend out reserves ,they classify loans as deposit liabilities thus creating money
Comment from : @mjsmcd

If only this was true Truth is banks just magic money out of thin air when they make a loan No reserves necessary
Comment from : @mickywes3733

They have to do HARD WORK keeping our money safe😂 that's ridiculous
Comment from : @Elsa99999

Can you explain bank certificates and how they work?
Comment from : @rebeccasummers4911

An update since the start of covid is the reserve banks need to have is now 0 Just to make the system even more insane than it already was And no they haven't changed it back
Comment from : @AaronsTalks

Thanks for the video💯just what I need to learn📝📝📝
Comment from : @thabangkanti

You are an idiot They dont create money, they create debt
Comment from : @Eline_Meijer

Thanks❤
Comment from : @erensolmaz2435

I’m a little confused about the making money part The whole thing sounds similar in concept to a Ponzi scheme, which is a scam, but when banks do it it’s “creating money”?
Comment from : @Thunderbender18830

Thanks to money printing through FRB, otherwise I can't withdraw my money from my bank account Because if it so, I need to wait until bank's debtors pay-off their debt back (even if they paid it back)
Comment from : @gold_real_money

I'm sorry for interrupting this comment section but I'm just curious do u guys think that bankers are smarter than programmers or the vice versa
Comment from : @justcurious1940

But remember the FDIC no obligation to pay you back right away fifty years before you got all your money back
Comment from : @rossboyack7434

Loans Create Expenses!! So they can print more money!
Comment from : @zelanahmed4864

zajebiste❤
Comment from : @yolobolo3306

wait so if I deposit 10000$ and 9000$ is given to another person doesn't that mean that the banks are printing money out of thin air?
Comment from : @billsipsis7629

basically money is a scam or more specifically modern money is a scam
Comment from : @MrTaloul

I’m lost
Comment from : @Ryansk2003

Just print the money
Comment from : @kalkishiva3554

I am sure you know the reserve requirement was lower to 0 in 2020 I liked the video, but it would be nice if you emphasized that all bank money is created What the Federal reserve does is supply the base for money creation Other than cash the money created by the federal reserve is held in the reserve accounts in banks
Comment from : @laurissamiller4364

Banks don't hold Mortgages youtube/14yiEZGk41s
Comment from : @xrprophet589

Infinite banking
Comment from : @davidmacias4991

1:01 That’s it? Holy cow!
Comment from : @ethanpetersen810

🐑
Comment from : @amandanil3811

no one explains this properly, fk sakebrbut I think I finally got it: the bank has to have 10 of it's total balance in cash, so if you deposit $100, the bank can pretend it has $190, because it still has the fkn 10 cash its obligated to have, and know the bank can loan $90 made from "thin air" This is a inflationary forcebrWhen the person who took the loan pays it back is a part I still don't get, cause I've heard the money vanishesbrbrI fell like crying from joy, I've been trying to understand this for MONTHS 🥳😭
Comment from : @gabia

So banks won't loan money if there's too high a risk of loss? Loss of what? Money that didn't exist an hour ago?
Comment from : @jasoncampbell4203

Who takes out a loan just to put it back into another bank? That part doesn't make any sense to me Can someone please explain and help me understand?
Comment from : @lukeschwab5327

But „making“ money is just wrong brWhat they are doing is taking your money and lending it to others brThe bank does not have „more money“brbrIn theory 2 people do have more money on the banking account than before But this system only works because you do not withdraw your money So all this does is give your money to others brbrIf suddenly all people would withdraw their money the system would collapse
Comment from : @saphirah6584

Actually there is no limit on the reserve that a bank must havebrFractional reserve banking is a myth!
Comment from : @ricksonpat4451

Great info
Comment from : @prakasheen4u

I don't get it 😔😹
Comment from : @aren1939

( REHAB TIME! ) BANKING INSITUTIONS R MOOR DANGEROUS! TO hOUR LIBERTIES THAN STANDING ARMIES FACTS OVA FEELINGS!
Comment from : @glynnispitcher9423

in case of Lebanon 🇱🇧, the FDIC went bankrupt 😑
Comment from : @Soma-7662

Biggest scam ever created, hands down
Comment from : @asambeeyoutubers2804

This was very helpful, thank you
Comment from : @mrosjo

hola vengo de la clase xd
Comment from : @zhans5216

But for this they need lots of new notes how they accrue it?
Comment from : @murtazaali2337

Fractional Reserve Banking is bullshit And this is not correct This 'Theory' has been disproven
Comment from : @Huron_Zeus

Nice
Comment from : @roshanofficial3580

How banks work:br- customers deposit money and gain interestbr- they take that money and loan it to businesses with interest ratesbr- the difference is the bank’s profit br- only 10 actual cash reserves needed in the bank
Comment from : @feelgoodhal9709

This helped a lot I was reading an Economics book and I was kind of confused with the 10 reserves and creating the money part Thanks!
Comment from : @raymichael8628

Banks create deposits,not moneyOnly central bank can create money
Comment from : @slawomirbartoszewicz2847

Lol! This is not how it works since digitalisation of currency in the 1970’s Banks just type out a new number when they ‘sell’ a new loan It’s not backed This is such a common and misunderstood myth Why do you think countries like USA have national debts in the trillions? why have the debt if you have all the money backed up lol! Because it isn’t Watch “97 owned” or something
Comment from : @sxavier2902

Banks never lend deposits Banks create money out of nothing whenever they make a loan The fractional reserve theory of banking, like the financial intermediary theory of banking is complete bunk The credit creation theory of banking is accurate
Comment from : @karfar8029

🏦🏦🏦🏦
Comment from : @ABDUSSAMAD-wd7xt

Is the Federal Reserve sustainable?br1996-2008: GDP ↑45, Monetary Base ↑46br2008-2020: GDP ↑32, Monetary Base ↑600brbrPrior to 2008, the Monetary Base and the GDP were 98 correlated reflecting the reciprocal relationship of money and economic expansionbrbrCan the current rate of monetary expansion without corresponding GDP growth continue without consequence?brbr*Bloomberg sued The Federal Reserve in 2011 and uncovered a $77T secret bank bailout not represented here
Comment from : @mrliamalan

You had me at Five minute
Comment from : @rahulporal

Correction… Bank give you 01 interest to your savings account not 10
Comment from : @hyeeagle

You’re going to blow up soon, mark my words Great job on the vids
Comment from : @tentic

Banks don't need deposits to issue loans They create brand new money when they issue a loan Central banks have stated this fact for quite some time
Comment from : @stuartporteous7762