If you deposit $10,000 in a bank today π¦
Hereβs what actually happens:
Banks no longer hold just 10% of your deposit. Since 2020, reserve requirements in the U.S. are effectively 0%. That means your entire $10,000 can be loaned out.
Someone comes in needing a $9,000 car loan.
The bank creates new money as credit β it's not your deposit being handed over. It's a new digital IOU backed by your deposit.
The seller of the car deposits that $9,000 at another bank. That bank now treats it as new money.
The cycle repeats.
Your $10,000 deposit becomes the foundation for up to $100,000 in newly created credit.
This is how modern fractional-reserve banking and credit creation work.
Money is no longer saved β it's created out of thin air π¨
The fiat banking system is a fraud.
Study #Bitcoin
