18. April 2018

Who owns the money in your bank account?

Who is  the owner of the money in your bank account?

Silly question? On the first impression yes, but lets have a look at what is really happening when you bring money to a bank.

“Amazing how people suddenly realize they don’t own their data on Facebook. Let’s see how they react when they find out they don’t own the money in their bank accounts either!”

Banks creating money

Fact is when you bring $100 to your bank to deposit in your bank account the bank can then lend $90 of our $100 to someone else. This person might buy something from a friend for $90. The friend then goes to the bank to deposit the $90 to his bank account. From that the bank can lend $9 to someone else and so on… Now if you arrive at the bank to pick up your $100 they are not there.. They will give it to you only if they have it in reserve from someone else that is not requesting it at the moment.

This is business and it works as long as everybody is paying back the loan. In the moment of crisis it will not be working. The reason is simple, there is more money out there then the amount that really exist.

Now back to the question, Who is the owner of the money in your bank account? Legally it might be you but in reality it is the bank. You will only be able to get your money back if the banks business is working or there are 9 other people who deposited $100 but have not requested it. In this case you get $10 of each of them plus the $10 that are still reserved for you in your account.

Back in the 1930s, Henry Ford is supposed to have remarked that it was a good thing that most Americans didn’t know how banking really works, because if they did, „there’d be a revolution before tomorrow morning“.


Do you think there might be a strong reason why the potential of Bitcoin is huge? Do you know the difference?

Let us know your thoughts.

19 Comments on “Who owns the money in your bank account?

16. Juni 2018 um 19:09

Great article, i choose to invest in altcoins too!

9. Februar 2021 um 14:02

Excellent post! We are linking to this particularly great content on our site. Keep up the great writing. Annabal Nestor Kendell

9. Februar 2021 um 21:43

Greetings! Very helpful advice within this article! It is the little changes which will make the biggest changes. Many thanks for sharing! Vinny Tristam Koralle

9. Februar 2021 um 22:42

Very good post. I certainly appreciate this website. Thanks! Lorine Dino Anton

9. Februar 2021 um 23:12

Do you have a recommendation for County Commission group #7? Sybille Sandy Doti

10. Februar 2021 um 4:27

Wow, this article is pleasant, my younger sister is analyzing such things, thus I am going to tell her. Tessie Winslow Belak

10. Februar 2021 um 5:42

I appreciate you sharing this blog article. Thanks Again. Really Great. Francesca Emlyn Materi

hindi movie
10. Februar 2021 um 6:12

As I web site possessor I believe the content matter here is rattling fantastic , appreciate it for your hard work. You should keep it up forever! Good Luck. Amelie Horton Mommy

10. Februar 2021 um 7:18

Post writing is also a fun, if you be familiar with afterward you can write otherwise it is complex to write.| Julia Aylmar Ludovick

10. Februar 2021 um 8:09

Hello! This post could not be written any better! Reading this post reminds me of my old room mate! He always kept talking about this. I will forward this article to him. Pretty sure he will have a good read. Many thanks for sharing! Liana Jeno Douty

10. Februar 2021 um 12:05

And it will all go swimmingly well until a true black swan event takes place. Tiffanie Lowrance Camm

10. Februar 2021 um 13:59

Hello! This is my first visit to your blog! We are a collection of volunteers and starting a new project in a community in the same niche. Your blog provided us useful information to work on. You have done a outstanding job! Gabrila Orazio Quartas

10. Februar 2021 um 15:14

Having read this I believed it was extremely informative. I appreciate you taking the time and effort to put this article together. I once again find myself personally spending a lot of time both reading and commenting. But so what, it was still worth it! Damita Duke Heeley

10. Februar 2021 um 16:44

I was very happy to find this site. I need to to thank you for ones time due to this wonderful read!! I definitely loved every little bit of it and I have you saved as a favorite to look at new stuff in your web site. Shaylynn Jakob Josephson

11. Februar 2021 um 15:58

Howdy! This post could not be written any better! Looking at this article reminds me of my previous roommate! He always kept talking about this. I most certainly will forward this post to him. Fairly certain he will have a very good read. Thanks for sharing! Miguela Enrique Bullen

14. März 2021 um 21:52

Please let me know if you’re looking for a article
author for your blog. You have some really great articles and I believe I would be a good asset.
If you ever want to take some of the load off,
I’d love to write some content for your blog in exchange for a link back to mine.
Please shoot me an e-mail if interested. Thanks!

15. März 2021 um 16:18

I all the time used to read post in news papers but now as I
am a user of web thus from now I am using net
for content, thanks to web.

3. April 2021 um 10:56

Fantastic items from you, man. I’ve be aware your
stuff prior to and you are simply too fantastic.

I really like what you’ve got right here, certainly like what you’re saying
and the way through which you are saying it. You make
it enjoyable and you continue to take care of to
stay it wise. I cant wait to learn much more from you.
That is really a great web site.

7. April 2021 um 5:06

I like the valuable information you provide in your articles.
I will bookmark your weblog and check again here frequently.
I’m quite certain I will learn plenty of new stuff right here!
Good luck for the next!


Schreibe einen Kommentar

Deine E-Mail-Adresse wird nicht veröffentlicht. Erforderliche Felder sind mit * markiert.