U.S. banks will collect a record $38.5 billion in overdraft fees this year

You guys are overlooking several things. First funds are transfered electronically within 24 hours but the bank sits on the money (and collects interest on it by loaning it out) for up to 7 or 20 days depending on the bank. Second banks only have 3% of the money they loan out. If you take out a $100,000 house loan the bank actually loans you $3,000 of THEIR money the rest is "fairy dust" just a bookkeeping entry. This is how more money is "created"

Check out

Money is Created by Banks: Evidence Given by Graham Towers: Source

Q. But there is no question about it that banks create the medium of exchange?

Mr. Towers: That is right. That is what they are for... That is the Banking business, just in the same way that a steel plant makes steel. (p. 287) The manufacturing process consists of making a pen-and-ink or typewriter entry on a card in a book. That is all. (pp. 76 and 238) Each and every time a bank makes a loan (or purchases securities), new bank credit is created — new deposits — brand new money. (pp. 113 and 238) Broadly speaking, all new money comes out of a Bank in the form of loans. As loans are debts, then under the present system all money is debt. (p. 459)

(This was written in 1964 when the fractional reserve requirement was 10%)
A PRIMER ON MONEY: Congressional Committee on Banking and Currency:
Source

When the Federal Reserve purchases a $1 million Government bond and gives some bank credit for $1 million in its reserve account, that bank also credits the bond dealer's checking account with $1 million. I n other words, to acquire $1 million of reserves, the bank also assumes a liability to pay its customers $1 million. If the transactions stopped here, the bank would, of course, come out even, neither gaining anything nor losing anything.

But the fact that there is now $1.million more of bank reserves than existed before means that the private banks as a group can create $6 million more money than existed before. In other words, by acquiring this $1 million more in bank reserves, the private banks have the privilege of creating another $6 million of bank deposits, in the process of which they acquire $6 million in interest-bearing securities or loan paper,[mortgages] less an allowance for leakage into the cash (currency) balances of the public. [pg 43]

What amount of Government securities have the private banks acquired with bank-created money? On January 31, 1964, all commercial banks in this country owned $62.7 billion in U.S. Government securities. The banks have acquired these securities with bank-created money. In other words, the (banks have used the Federal Government's power to create money without charge to lend $62.7 billion to the Government at interest. On January 29, 1964, commercial banks had total assets amounting to $304.7 billion, and all of these had been paid for with bank-created money, except $25.4 billion which had been paid for with their stockholders' capital. In other words, less than 10 percent of the banks' assets have been acquired with money invested by stockholders in the banks. [pg 46]

Now banks aren't even required to have 10% reserves.
US Banks Operating without reserve requirements: Source

Banks typically have 3% of their assets in cash in order to meet customer needs. Since 1960, banks have been allowed to use this “vault cash” to satisfy their reserve requirements. Today, bank reserve requirements have fallen to the point where they are now exceeded by vault cash, which means lowering reserve requirements to zero would have virtually no impact on the banking system. Source

If banks are loaning out money on credit cards and house loans and that "money" did not exist until the banks made a book keeping entry, can someone explain how the he!! the banks got into so much trouble? Banks are lending money that doesn't even exist until THEY create it!!! Yet they are collecting up to 32% interest on this "fairy Dust"!!!

Originally posted by 27jd
reply to post by truthtothemasses

 

I'm SO extremely sick of people like that, personally. The "you got what you deserved" crowd is the reason our country is in as bad a shape as it is. They're all for whatever as long as it doesn't affect them personally, but it will soon enough.

I was just going to say the same thing, but my friend here beat me to it.

Its these love it or leave it obey your master people that are letting this keep going. Our country is being manipulated by crooks. I used the think our country protected us but they dont protect the people as much as just about every other developed nation out there.

The banking industry needs to implode.

All those tax dollars to bail them out I thought for sure it would wake everyone up.

Why didnt it?

$38,500,000,000!
All paid by folks like you and I.
Why? For the 'convenience' of a more cashless society?
But, there could be several theories, which I will try to explain later.


My main theory is the seemingly ongoing shift to a paperless currency order. It is almost customary to not carry any paper money around as most transactions are done with debit/credit. While I'm sure there are people who do have cash in their billfolds or purses, I don't see very many at my place of business.

It is the whole veil of convenience that has been brought to us, in effect... by the bankers themselves and now we are the ones that pay for it, literally.
___________________________________________

"Give me the right to issue and control a nation’s money and I care not who governs the country.” Meyer Amschal Rothschild, International banker

___________________________________________


My honest question, to anyone that can answer it is this:
Why do each of us need to put our own individual wealth in someone else's hands?


T-



[edit on 09/8/13 by telemetry]

The whole thing seems stupid. I understand that people can make mistakes, and be charged extremely large amounts -- I just don't understand why.

Why do we keep playing this game? Why do we give them the power to do this to us?

I don't have a bank account. I would suggest everyone else avoid having one, too. But, this stupidity will never end. People are obsessed with their banks and checks and credit cards. So they will pay the price.

No. The people probably will never "wake up". We love to be owned and reamed at every corner. I wish more people would get screwed over -- if only there was some chance of it waking them up to how stupid all of this really is.

reply to post by LostNemesis

I don't have a bank account. I would suggest everyone else avoid having one, too.

I have a small business so I have to have an account to clear customer checks. I do as much business in cash as possible however there is a downside to that.

The Bankers do not want people NOT using banks, they want the use of your cash because for every $3 you deposit they get to lend out $100. To force people to use banks for their money there is a neat little law that make it "illegal" to have large sums of cash. It is the civil forfeiture law.

Incredible as it sounds, civil asset forfeiture laws allow the government to seize property without charging anyone with a crime....

Under civil asset forfeiture laws, the simple possession of cash, with no drugs or other contraband, can be considered evidence of criminal activity.

Asset forfeiture was virtually unheard until recently. In 1984, Congress overhauled the federal forfeiture laws to give the government incredible advantages over property owners, and began expanding the list of offenses which could trigger forfeiture. Now there are over three hundred federal offenses which trigger forfeiture. But the most terrifying aspect of the legislative scheme in the 1984 crime bill was that it allowed the seizing police agency to keep what they seize and forfeit. This inherent conflict of interest has lead to greater and greater abuses, as forfeiture income -- and dependence on forfeiture income -- has risen. Asset forfeiture brings in close to a billion dollars a year for the federal government alone. Source

Better hide your excess cash, silver and gold where the cops can not find it.

reply to post by Speedtek

reply to post by Coach Knight


It's not about bouncing checks, read the dam* thread...everyone is talking about debits...which clear instantly. and in the one case that was cited by a poster, the deposit was made 14 days previously!
I think you are ridiculous, back up a couple of pages and read before you critique.

Originally posted by Blaine91555
This was all over the news on Monday. I suppose it got little attention because it only affects people who illegally write rubber checks.

This charge is not only easy to avoid by setting up a personal credit line on the account, the act of writing a rubber check is a crime.

Don't fool yourselves into thinking writing rubber checks is not a crime.

The bank saves your butt's every time they cover the bad check for you.

Look up check kiting for more info. You can not write a check until after the funds are deposited otherwise it is kiting.

checks do not equal instant clear debits..... geez does anyone actually read and think about what they are reading instead of inserting their own thoughts automatically between the lines????????????????

because most are kept ignorant,the system manipulates to their advantage, BUT this is controlled,as are most things.
You miss your payments on your car, they seize it, then resell it on leaving you without a car,you take on more debts with the car,then borrow more for another,,, now it changes because there is a recession ,they know if cars are reclaimed, who will buy it? they will be stuck with cars that cannot be sold, so what do they do? they are so nice to you, you cannot make the full payment ! don,t worry ,pay a little less,i am mr nice guy. Credit is its own enemy,when used properly it can be a big advantage, when its used as a habit,things are different.
One time if you had cash it was easier to negociate, businesses don,t want too much cash ,they make less money.

We are our own enemy,reduce card spending,banks don,t like that, why stress your life struggling to keep up with debts? you lose in the end anyway? once you get off the rollercoaster of life you find hey, it ain,t as bad as expected, in many ways it may be better.
The veil of ignorance is lifted, not a perfect world,but better off than some.