During my 20’s I was trying to unravel the various conspiracies and confusing machinations of the world. I was into the Sovereign Citizen movement, which first gave me the idea that banks are not all they are assumed to be. So after researching for a while, I eventually stumbled upon the real issue with our financial system. People such as Richard Werner and Alexander Faure (among others) have shown the way. The real issue is Credit Creation.
Point 1) is simply false. When a bank creates a loan it creates an asset (the loan) and a liability (the money in the borrowers account). Thus at the instance the loan is created the equity of the bank is unchanged. If the borrower defaults the bank makes a loss.
Holy hell
The bankers were hoping we would never notice! And most of us still don't. Thanks to you for waking me up to the reality of the economy!
Point 1) is simply false. When a bank creates a loan it creates an asset (the loan) and a liability (the money in the borrowers account). Thus at the instance the loan is created the equity of the bank is unchanged. If the borrower defaults the bank makes a loss.
So as an average citizen what can I do with this information?