Guys, banks all over the world use the Basel banking system(Fractional Reserve Banking).
They use all our deposits, bonds, assets, etc, etc as Tier capital reserves. They leverage off these reserves in the digital domain to invent money through loans. Your bank deposit of 10k might be earning 6% but they can leverage that up to say 10 times by creating digital money for loans and earn 6.75% interest on 100k.
Do the sums.
Different Tier reserves, different leverage. If there was a bank run for cash there is only 6% of physical money in existence for the money that exists.
If you and me created counterfeit money we would be put in Jail for fraud but these guys have a license to digitally print money. LOL.
I believe that there are enough deposits and Tier 1 capital reserves in Australia to fund all residential home loans. The big 4 banks tapping into overseas money is mainly for commercial lending.
Greedy Buggers.
How do you think they are making billions every quarter, the difference of .75% between our deposits and them lending to us. Please!!!!
That wouldn't be enough to pay the rent in CBD sites !!!
Therefore every dollar in existence is attached to debt. So you have debt chasing debt. When asset prices slow down and lending does not happen or lending is slowed down which slows down asset price growth, the money runs out paying for all the debt. Hence tightening economies!!
They have a noose around our necks and they can tighten it at will.
