Opinion from a Libertarian ViewPoint

3 Shocking Truths Most People Don’t Know About Money in Bank Accounts…

Posted by M. C. on April 19, 2023

by Nick Giambruno

Henry Ford astutely observed that a revolution would occur overnight if people truly understood the banking and monetary system.

That’s because modern banking is an elaborate illusion that deceives people into a false sense of security… until it’s too late.

Large banks can fail in hours, and life savings can evaporate overnight.

The US banking system is especially vulnerable, as recent events have shown.

Why do so many people put their confidence and life savings into an unstable system?

I would say it’s because they do not understand three fundamental truths about modern banking.

#1. The money isn’t yours.

#2. The money isn’t actually there.

#3. The money isn’t really money.

Truth #1: The Money Isn’t Yours

Many people are surprised to learn that they don’t truly own the money in their bank account.

Once you deposit money at the bank, it’s no longer your personal property. Instead, it belongs to the bank, and they can do whatever they want with it.

What you own with a bank deposit is a promise from the bank to repay you—an IOU.

Depositing money is like making an unsecured loan to the bank, with practically no interest to compensate you for taking such a risk.

It’s a terrific deal for the bank and a terrible deal for you.

That’s why a bank deposit is very different from cash in hand. Yet the vast majority of people wrongly conflate the two.

Further, the bank can freeze “your” money by pushing a button for whatever reason they find convenient.

Perhaps you bought something the bank didn’t like or made a politically incorrect statement on social media. Then, don’t be surprised to see your account frozen or worse.

For example, PayPal recently floated the idea of charging people $2,500 for promoting so-called “misinformation.” Expect much more of this stuff in the future from banks and financial institutions.

If your money can be easily frozen or seized, it was never really yours.

Truth #2: The Money Isn’t Actually There

See the rest here

Be seeing you


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