I am a big follower of Mike Maloney. He is the man responsible for opening my eyes and helping me understand just how our monetary and financial systems really work — and for that I will be forever grateful.
Last month, he put out a brief video — which I have included at the bottom of this article — that perfectly explains why our entire banking system is immoral, and an outright sham.
In short, Mike shows that for every dollar that you currently have deposited in a US bank there is actually just 0.00061 dollars available in the banks’ vaults to draw from — in other words, if there was a financial panic where everybody wanted their cash at the same time, the banks could only pay out six cents for every $100 dollars deposited by their trusting customers. Six measly cents!
Put another way, if everyone had $10,000 deposited in the bank, and they all demanded their cash at the same time, the banks would be able to give each depositor $6.
Never mind that all of those dollars are IOUs — virtually worthless paper promises that are backed by nothing more than the “full faith and credit of the US government.”
In case you haven’t noticed, that is rapidly crumbling.
Got gold? Got silver? If not, you better get some. Soon.
Photo Credit: stock photo
Yeah, gold and silver seem to be the plan. Bullion, not ‘virtual’ stuff you buy. We have started getting some coins and slowly building a small ‘nest egg’ for the future. In my country we’ve already gone through a pretty tough inflation (what used to cost $10K turned out to cost $10 in few months, so people lost a lot of their savings. So we’re not banking on our currency or others
Good for you, Ramona! I’m afraid most Americans are going to discover what you already know the hard way.
Len,
Have you seen Maloney latest, it came out yesterday and he talks about how the 50 day moving average is beginning to fall under the 100 day moving average. The last two times that happened was 2001 and 2008. I think things are getting very close, even JP Morgan has come out and said buy gold (feint)! I’m sure they will try and prop things up until November for Hillary sake, but who knows they might let it crash and crown Obama King through martial law. Things are getting interesting, looking forward to cup of joe, I missed it last week.
Jared
No, but I’m going to go watch it now. Thanks for the tip!
One thing I’ve noticed is that the powers-that-be are needing to expend more and more firepower to get less and less effect when they purposely work to move the price of gold and silver lower.
The banks have always operated under what’s called “Fractional Reserve.” It’s akin to “Ponzi Schemes.” It’s pulling money out of the air that really doesn’t exist. That’s why I always said that if everyone wanted withdraw their money the banks would say, “Come back later.” This happened to my wife and I. If you deposit $1000 dollars in the bank, they will keep $100 for you and loan out your $900. Smart — but dishonest!
That’s close, Les, but it’s even worse. You give the bank $1000 — as you say, they then get to invest or gamble the other $900 as they see fit. By the way, when you hand over your cash, you become an unsecured creditor who is last in line if the bank goes belly up. But it gets worse:
Your $1000 deposit allows them to give out $900 in ADDITIONAL loans … That’s newly-created cash created out of thin air — which they then charge interest on. For doing what, exactly? Yep, absolutely nothing more than hitting a few keys on a keyboard. Dirty. Rotten. Scoundrels.