Monday, February 17, 2014

From piggy bank to commercial bank

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1 comment:

Anonymous said...

FIRST explain clearly how à central bank works, creating money out of thin air. The fractional reserve banking system for private banks. No federal deposit insurance in St. Lucia. If you put your money in à savings account,
you lend your money to bank and you do not own it anymore. Just just have à claim on bank. Any new money created by the central bank is debt for the people.
Since 1971 money is not anymore backed by gold. Just trust in à paper promissory note. If you get a mortgage from a bank, this bank only needs 10% in its own real assets and/or deposits. 90% of the mortgage is created by the computer without any underlying assets.

February 18, 2014 at 5:15 AM

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