Bank That JUST Holds Your Money & Keeps It Safe?
For eyes who wish to see
(👆Listen to audio version of me reading)
“Annnnnd its gone…!”
Years ago, I remember my mother telling me a story of when she was a young girl.
She told me that she would never forget the day when she learned about the banking system.
She was told by one of the workers at the bank they didn’t keep HER money in the bank.
My mom was blown away.
You can imagine a little girl just being appalled that the bank didn’t have HER EXACT DOLLARS that she deposited with them.
She said, “you are telling me that when I deposit these EXACT $10 with you, you don’t keep them in safe keeping for me until my return?”
Bank: “NOPE!”
Mom": “Are you serious?”
Bank: “YEP!”
At that moment, she learned that she became a creditor to the bank and she no longer legally owned those dollars.
The dollars were gone and the bank could legally do whatever they needed to do with them.
And that is more than most people ever know about the banking system, to be totally honest.
Full reserve bank versus fractional reserve bank…
Gold is equity.
Full reserve.
You pay to store and guard it because it is worth something and valuable.
Banks/vaults don’t lend it out to make money on it therefore it costs you money through guards/vaults or ownership in your home with insurance or firearms.
Gold is a store of value, therefore it is MONEY. Holding gold over time preserves your purchasing power.
Fiat (Dollar) is debt.
Fractional reserve.
Why pay to store it? And if it gets lost who cares, it’s debt. The currency is backed by neither gold nor bitcoin.
Dollar must be run through commercial banking system and lent out over and over to find yield (interest rates.) Because fiat is debt, it is a liability not asset, on your balance sheet. So you must find yield to offset the loss in purchasing power.
Every dollar in existence is owed back to the Federal Reserve, with interest.
Therefore fiat (dollar) is not money. Money MUST be a store of value. So fiat is CURRENCY.
Bitcoin is equity.
Full reserve.
Protected and guarded with encrypted energy.
Moves over space and time at speed of light so there’s no cost to holding, protecting, and using. (Except miners/nodes using the energy to protect system.)
The benefits of both systems above with minimal drawbacks. Main drawback is that world is hit by asteroid size of the moon and every form of life and tech is permanently destroyed.
Bitcoin is a store of value, therefore it is MONEY. Holding bitcoin over time preserves/grows your purchasing power.
Banks are inherently going to be against the protection of your currency.
Banks are private entities using YOUR currency to make currency. They use financial arbitrage to take your hard work and re-lend it out once you deposit.
This is called borrowing short (from your deposits at low rates) and lending long (higher rates through writing loans.)
They MUST lend out in order to get yield on your currency so they can make something and still turn around and give you interest on your deposits.
Banks make you think it is “safe in a vault with armed guards” when in reality it’s just digits in a computer and the real thieves are siphoning your wealth away from you through inflation every second of every day, in plain sight.
Then banks created up around their services an entire industry of credit cards then “credit scores,” and overdraft fees, annual fees, service fees, etc. continuing to enrich themselves when in reality they are using your currency (time and energy) to shuffle the cash around making fees off each move.
The most insidious part now is the commercial banking system is where 90% of the currency we have comes in through fractional reserve lending.
Meaning the banks have little to nothing on deposit (vault cash) actually available so when they loan cash out to you (bank credit) for a business, auto, or home loan they don’t actually have ANY cash on hand.
They create digits in the computer out of thin air that you are then charged interest on (bank credit)!!!
It gets worse, because they have no currency saved up, when people come to actually get their OWN cash back it causes panic and bank runs because people realize there is nothing there and the bank collapses (or gets bailed out.) The people end up paying through inflation in the long term on some form.
Either way, banks gets to rake in fees and interest, and win.
They make money in the short term and get bailed out in the long term.
What a racket!
Bank in the sky that just “does its job?”
For anyone wondering how you get a bank in the sky to just “do its job” like VC billionaire Chamath “the rug-pull master” then look no further than the breakdown above.
We have a monetary system that was created 14 years ago and rooted in code and law, not men.
Unlike our system of men and no rules, currently.
Be careful who you follow, the guy who is laughing at people who he is about to dump on and leave holding the bag…
The fraud is wondering how we get this done?
Well if he wasn’t so busy using his information asymmetry to exploit people who don’t have the connections and privilege he does then he would know that bitcoin was discovered for exactly this time we live.
Doing the same thing and expecting a different result is still insanity, no?
Stay strong,