Why Do Banks Make So Much Money
Combine this video with the excellent questions and answers given throughout this blog to improve your knowledge of internet banking.
Banks make so much money because they can create money, effectively out of nothing, by lending. Every single pound in your bank account was created by a bank, not by your government. George Osborne says that we all must pay more taxes and receive fewer public services. According to the chancellor there is no Plan B for the UK economy – but he’s utterly wrong. We could make one simple spending cut that could make all others unnecessary. Here’s Plan B: cut the benefits to bankers! Banks are the most heavily subsidised businesses in the world, specially protected by governments. While the money runs out for the rest of us, the largest private banks still thrive. This is because they get the biggest subsidy of them all – the licence to print money. Hard to believe? Martin Wolf, the Chief Economics Editor at the Financial Times, said it recently: “The essence of the contemporary monetary system is the creation of money, out of nothing, by private banks’ often foolish lending…” You heard that right. Private banks create money out of nothing! Then they loan it to us and ask for interest on top! If you’ve ever wondered why the bank buildings around the world soar higher than any palace or spire ever did, you now have the answer. But the banks don’t simply print money using secret printing presses in their basements. They don’t have to. Like so many other things these days, printing money has now gone digital. With the popular use of debit cards, electronic fund transfers, and …
Video Rating: 5 / 5
Tagged with: Banks • Money • Much
Filed under: Online Banking
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If the banks get the money out of no were were does the interest come from cause they only created the princible money not the interest thats added on to it.