The TRUTH behind banks and money

I spend so much time talking about the banks, yet never really look at the corruption of what people THINK the banks are.

The local branches of banks (barclays, HSBC, Santander etc.) are the people that directly control our money, they see how much we earn, how much we spend, where we spend it, what we spend it on, anyone working at a local branch has access to these details (they have to be, to do there job) and even people over the phone can see your spending habits, hence when you ring up with a blocked card, they ask you questions about your spending.

But, for every pound you have in the bank, this is used as insurance to get loans ten times greater, so 1 pound is worth 10 pounds to the bank, not that special, until you get to big numbers:

If you have 10,000 pounds in your savings, this is worth 100,000  to the banks, they can loan 100,000 out to a bigger company, and when this gets paid back, and the company gets more money, (say, 100,000) this is worth ten times to the bank (so a company with a bottom line of 100,000 each year is worth a whopping 1,000,000 to the banks, this can be lended on and the cycle continues)

HOWEVER, this is not real money, nothing you can touch, its on a screen as a number, so it literally is worthless to us, yet the banks (who control these screens) each digit is worth 10 digits, but in actual paper money, there is not this much money in the world.

If every single person walked into branch and wanted to empty their bank accounts, there wouldn't be enough cash, which is why there is a limit to how much you can withdraw from the bank without notice, you have to ring them and inform them you will be coming to withdraw x number of thousands and they either order the cash in from bigger branches, or request a loan of the government that ask to get more printed by the bank of England (however, the bank of england loans this money to the government at an interest rate, it is then the governments responsibility to pay this debt, but how do they do that? by requesting more money, it is a debt we will never overcome)

so if everyone requested to empty all there savings on the same day, how much paper money would have to be in the world?

lets do the math:

say if (in England) there are 6,000,000 people living with 10,000 in savings in their accounts
that 10,000 is worth 100,000 per person to the banks
so there would have to be 60,000,000,000 (sixty billion) in cash in england at that day, in all the banks, assuming this would be paid in the majority in 50 pound notes there would have to be 1,200,000,000 (one billion two hundred million) notes in circulation. (when realistically the Bank of England say there is only 40 billions worth of all notes in circulation today, there would be 20,000,000,000 pounds missing that would need re printing, quick time )
however, if 6 million people took 10,000 out of there accounts on the same day, the government would lose access to 600,000,000,000 (six hundred billion) in one day, they would be crippled, and the value of the GBP would drop to be less than that of the Japanese yen!

how good does your money seem now?

Liam
OUT!