American economy: A highway robbery

The story is about a prince named banking system.

So the reserve ratio is the amount of deposits the banks had to keep with themselves, they can loan out the rest. The reserve ratio in America is 10%. Which means that out of 100$ the bank keep 10$ with themselves and loan out the rest of the 90$.

So they deposit their money in the banks, the bank keeps the 10% with them and loan out the rest of 90%. Which goes to other people, they then invest it or buy other stuff with it and so the money goes from one person to another but soon someone decides to deposit it in his account. The bank again keeps 10% and loan out the rest of the 90%. And so this goes on and on.

There is 832.6$ bn printed money in america. Almost all of it deposited in banks.

Rs in billion

Serial #	Total Deposits	Reserve 10%	Loan 90%
1	832.6	83.26	749.34
2	749.34	74.934	674.406
3	674.406	67.44	606.996
4	606.996	60.7	546.266
5	546.266	54.627	491.639
6	491.639	49.164	442.475
and so on

You can find the total deposits with the help of a formula.

The sum of infinite progression.

S=P/r

S= Sum, P= Principal amount, r=reserve ratio.

8326$ bn=832.6$ bn/10%

Out of these 10% 832.6 $ bn are reserved and the rest of the money 7439.4$ bn is loaned out. This money is only in the books and computers but not in reality.

I am not completely sure but according to some sources average interest on deposit in America is about 3%. And average interest on loan is around 6%.

So it means that

Total interest on deposit is 8326$ bn * 3% = 249.78$ bn.

While Total interest on loans are 7439.4$ bn * 6% = 446.36$ bn.

So the net income of banks from the peoples money is 446.36 – 249.78 = 196.58$ bn.

That’s 23.6% of the total money. Does this means that they are taking 196.58$ bn from them each year.

Wrong: this means they were taking 196.58$ bn from us.

It’s been years now. It only took them 5 years to take all the money. Now they have nothing to give. 51 corporations of the world hold 96.8% wealth of the world. Out of every 9 Americans, 8 are in debts. Each year more and more people are becoming homeless.

And above all the big corporations are taking all their money and shifting it to China. That’s all the money there is. And when the hard working tax payers will go to the bank asking back there deposits “They will declare insolvency.”

“The only thing necessary for the triumph of evil is for good men to do nothing.”

“But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.”

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