This is called Fractional Reserve Banking.

Most people know that the Federal Reserve prints money.

But that’s actually not how most of the money in the US is created.

When you put money into your bank account, the bank is then able to lend that money out to other people.

But here’s the thing.

If you deposit $100, the bank is now able to loan out 5X, 10X or even 20X that amount to other people, depending on the limit set by the Fed.

The banks give you 1% interest on your deposit of $100 but then go loan out $2,000 to other people at 10-20% interest.

That extra $1,900 is just CREATED OUT OF THIN AIR.

And the banks make an absolute killing off this strategy when they are doing this with trillions of dollars.

Subscribe to learn more about finance! ‪@GreenEraFinancial‬

———

Green Era Financial LLC is a registered investment adviser. This platform is solely for informational purposes and is not offering advisory services or sales of securities. Investing involves risk and possible loss of principle. This social media, YouTube, podcast, website, post is for informational purposes only and should not be regarded as personalized investment advice or relied upon for investment decisions. Comments by viewers and/or recognitions are no guarantee of future investment outcomes and do not ensure that a viewer will experience a higher level of performance or results. Public comments posted on this site are not selected, amended, deleted, or sorted in any way. Content herein is for educational purposes only and is not intended as advice. Cary Green is an employee of Green Era Financial LLC and may maintain positions in any securities discussed in this video. All opinions expressed are solely his own opinion and do not reflect the opinion of Green Era Financial LLC. Past performance is never a guarantee of future returns. This content should not be regarded as personalized investment advice or a reflection of the performance of Green Era Financial LLC or its clients. Nothing herein is intended to be a recommendation. Rather it is intended to illustrate a point or educate on a financial topic or principle. Current and future markets may differ significantly from those illustrated here. Please always seek to do your own research and consult a licensed financial professional before making any financial decisions or changes. Visit greenerafinancial.com for more info.