do banks still physically transfer cash amongst themselves to balance their books? how does banking actually even work?
Do banks still physically transfer cash amongst themselves to balance their books? how does banking actually even work?
Owen Gutierrez
Other urls found in this thread:
en.wikipedia.org
en.wikipedia.org
youtu.be
twitter.com
Blake Roberts
>how does banking actually even work
Nobody knows lad. We just feed money to vaults and that keeps the bank Gods happy somehow.
Samuel Gonzalez
Most of the money stays in the central bank, user.
Carter Edwards
Since it's just paper that isn't worth anything they don't bother keeping much on hand these days. When currency was gold backed and anyone could cashout for gold it was a different story.
Xavier Jenkins
When I have a debit card from bank x and use it to withdraw cash from an ATM from bank y doesn't bank x owe that cash to bank y somewhere along the line? Aren't literally billions in cash technically circulating between banks constantly?
Austin Jones
Yes but they only circulate electronically. Most of the hard cash stays in one place.
Lincoln Walker
So banks mark their cash stockpiles in terms of how much other banks own? Do banks audit each other to ensure the physical cash match the cash on the books?
Henry Hill
The amount of paper cash circulating in the world is just a tiny fraction of the money circulating electronically. There's no reason to move that around.
For every dollar bill a bank has they have 99 more that only exist in their systems.
Ryan Harris
I don't get it
Benjamin Scott
Usually electronic transfers.
Where does the money come from? Debt.
Easton Torres
What are you even doing here? That's so fucking basic
Matthew Johnson
Jayden Garcia
Trying to learn I guess
Eli Hughes
When you make a bank account and deposit your money there, the bank will take your money (let's say 1000) and lend 10x more to other people.
So for your real 1000 dollars the bank will create 9000 extra dollars out of thin air.
Evan Young
You really need to read up on fiat and why many people hate it so much.
If everyone that has money in X bank branch tried to pull it out at once the bank would only be able to honor ~5% and that is totally legal.
Levi Bailey
It's all a sham, there is not enough currency even in existence to cover all the debt that people have at any given time.
Basically debt gets created at the same time currency does, so with good ol' interest debts can never fully be paid off. Just ask (((them))) about it.
Charles Harris
But if everyone went to the hospital at once the hospital would break down too wouldn't it? If everyone went for a ride on the highway simultaneously the roads wouldn't work either
Not an argument
Alexander Gutierrez
youtu.be
Watch this whole video, but this part is about cold hard cash.
Brandon Turner
Except those other examples don't happen when it actually does with banks.
Mason Gonzalez
FIAT money
fiat is Latin and translated in english means "will become" or better "let it be".
Fiat money = Let it be money
Banks don't rent money they create it out of air. They are the biggest criminals on earth. Every human is born with a debt. A debt that cannot be settled. Funny thing is that the central banks who have the right to print FIAT money are in the hands of private persons. That's why also every country is in huge debt because they have to BORROW the money from the central banks (with interest that is impossible to pay back) and now you know why you should invest in digital currencies which are deflationary like bitcoin, dash & xtrabytes! I wanna conclude my post with a quote from Woodrow Wilson, the 28th POTUS: "I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world - no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men."
Jackson Phillips
Great quote, if only it wasn't true.
Jeremiah Davis
However you want to look at it, you're getting fucked by a black box system intentionally designed to be intransparant and exploitative.
Hence the niche for crypto where all fuckery is on display and anyone with more than 2 braincells can avoid scammers.