Why most of our money isn't real

A bank that relies on constant growth from venture capital money sounds like a disaster in slow motion.

Johnny, correction: it's for the benefit of the 1% not our society

Banks should fail. Capitalism must end. It's oligarchical and undemocratic

The only one making the most profit is the bank from the money people** deposited. When people need to borrow money from the bank they gotta return it and more (interest) and that's were this "magical" money comes from, people working their ass off, not just outta thin air! 🤦🏻‍♂️

{O believers! Fear Allah, and give up outstanding interest if you are ˹true˺ believers (178) If you do not, then beware of a war with Allah and His Messenger! But if you repent, you may retain your principal—neither inflicting nor suffering harm (179) } surah al-baqarah
{Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein(275)} surah al baqarah

Now you know why Islam forbids usury (interest). God literally threatens war on everyone who deals with usury.

That part at the end of that movie is so bone-chilling that I watch it not really understanding what happened or anything about banking, but it was amazing

holding on to your bonds doesn't work because you re paying your depositors between 4-5% interest today, which is less than the return of your bonds of 1-2 percent (based on the date you bought them. Clearly the bank is operating with negative profits with those assets. Ofcourse, selling the bonds before maturity will create a bigger loss

My greatest concern is how can we recover from the current economic and global challenges, especially considering the ongoing political power struggle in this United Nation's

Speak up man I'm not wearing headphones rn

We are poor but we think that we are rich

Imagine if factory that pays you a salary owns the bank you put you salary in, this way factory can use salary money twice

Its wild that bankers are allowed to give themselves bonuses as the company collapses

Dont let the banks fail, instead prosecute the people responsible for the failure

If the government wants to be able to swoop in and save the banks, then they have to increase the money in the fund created after the 2008 melt down. They have to make the banks pay more for insurance against their recklessness.

The fractional reserve system is a scam. Plain and simple.

So basically SVB was a Ponzi scheme. 👌🏾

Andrew Jackson warned of this and even killed off the major banks until sadly 1913 happened

Banks do not depend on people and companies depositing money anymore, that was 50 years ago, maybe even 30 years ago. You don't see the ads about interest anymore, they borrow their money from the central bank (Federal Reserve), and are in practise agents for central banks, nothing more.

I was looking to deposit some $ 100 000, and my bank said that they only pay interest on deposits up to $ 100 000, so I had to choose a small local bank instead. The bank was quite clear: -We are not looking for deposits, we can borrow the money in the central bank at a lower rate, with much less work and hassle, no bank lobbies and such,

Johnny, your video production and explanations are top-tier. Well done, Sir!. Johnny, your video production and explanations are top-tier. Well done, Sir!.

I've learned what I know about banking as a kid when I watched "it's a Wonderful Life".

GROSS OVERSIMPLIFICATION


The innocent people who deposited their money in the bank were bailed out.

The shareholders and owners of the bank lost all their investments cause they made a bad bet.

The government swooped in, sold all the assets of SVB and used the money to return it to depositors. They only gave the change that was left.

This signals to bank executives that if you fail, the government will come in, sell all your stuff and reduce your stock price to 0$ so they are more vigilant now.


You have got to do more research before you come out and make a video because if you don't then you are essentially propagating fake news.

What's crazy is that there are times they don't even have to keep any money in reserve so that REALLY multiplies how much money they make.

Sure looked like the government had that kind of money.

Thanks Johnny. Love the video

zeitgeist said this over 10 years ago and people called him crazy.

Can't wait for Evergrande to fail in China, so people can really see how propped up the banks are. It's about to cause a meltdown.

It's a federally protrcted ponzi scheme.

Because it is business as usual, the way to steal our taxes.

DRS GME

We all know when you place all your eggs in one basket and the basket gets knocked over, your in trouble! If the Silicon Vally Bank based the majority of its loans and accounts with budding business, well duhhhhhh!! It may happen one day for sure!! And placing a majority of funds in a major hold (bonds) is not a good idea when you have risky business!

Thanks for showing it in the easiest way possible. Although i do have one more curiosity and always has been. Like,
“What will happen if people stops using banks as a secure vault “
I do know one reason, safety and security will collapse like robbery and all. But I want to know besides these facts.

What happened to SVB is really scary, and goes to show that no corporation, however big, is immune to collapse. I have always had a deep-seated mistrust for corporations. I have plans to pull out most of my money, but don't know what to do with $350k sitting idly. I'd like to go into the stock market, maybe. Any ideas?

Great work on: The Dangers of Fractional Reserve Banking. See what I did there🙂?

Piramid scheme

Your visualization of concepts makes viewers smarter. Wish I had this in my college days. Maybe my next lifetime. 🙏🏼

Didn’t they also fail due to them investing in crypto?

that's not creating money that money was in the system that was just loaned out within the system

Tying all your money up in illiquid bonds is risky but it wasn't even their money. You are betting that you won't need that money for 10 Years. Who can predict 10 years into the future. Maybe the economy wouldn't be so bad if we didn't allow everyone to go into enormous, unworkable debts. The banks need to balance liquidity because they have my damn money. They are playing with other people's money they need to be able to return it upon request. SVB deserved to fail and so did big business in '08

Local branches in Upstate, NY sometimes close their local branches, and it seems like when the drug dealers/narcs leave the small towns, the banks in those towns close. I would rather have the local branches close than the narcs. It is probably worse than I am saying, but banks offer few services, you cannot even trade in gold or silver coins. Some offer okay financial services and ways of surviving a post pandemic atmosphere. Supposedly, the banks manipulate the foreign currency exchange markets to such an extent that traders watch them to help in decision making. Overall, banks are nice and offer nice jobs in usually a comfortable atmosphere in modern buildings, and usually offer a safe place to keep money. Unfortunately, due to the great deceiver, the world sometimes known as the "devil's playground," banks may be kept up by horrible activities behind the scenes, it is possible.

How are you alive ? And not snowdened?

So banks are a legal ponzi scheme.

Ight people let’s go take out our money

It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone is the 15th when the government issue a new batch of Bonds. My portfolio has been stagnant and needs growth. What is the best way to take advantage of this downturn?

the government will pay it back... meaning 'we pay it back'... just like 'we' paid money back in 2008

kinda scary how much it sounds like a poncy scheme when you describe a bank :P

this episode sponsored by federal bank

its sad when you have to pay to stop junk mail. It might as well be another tax.