Thursday, October 17, 2013

Proof That You Don’t Own Your Money In a Bank

Just to reinforce the idea that every cent you have in a bank is not your own:

Chase Bank has moved to limit cash withdrawals while banning business customers from sending international wire transfers from November 17 onwards, prompting speculation that the bank is preparing for a looming financial crisis in the United States by imposing capital controls.

While the good journalists over at Infowars allude this to a war on cash, what is really happening are the beginnings of a contraction.  By providing limited amounts of cash, they are trying to preserve their malinvestments as long as they can so as to cushion their own failings.

Banks are lenders first and foremost.  However, whenever you deposit money into them, you have lent money to that bank.  Unlike the loans they sell, however, the debtor (the bank) will determine the terms of the loan to the creditor (the customer).  It’s like if you wrote up your own terms for a credit card and had the bank sign it.

So while it is unethical for a bank to limit cash withdrawals for their customers, it is perfectly in line with the business policies and practices of a fractional-reserve banking system.

Remember, every penny that you place in a bank does not belong to you.  Never forget that.