Oddbean new post about login | logout Well your money is not really in your bank account and is being used others. It is like most of your money is always on holiday away from you. The sad thing is that 95% of the population does not know what a fractional reserve system is.
they also don't know that by the terms of the "agreement" they make with you, in fact the title to the money is transferred when you deposit it, and it's their good hearts that makes them give you back... they give back only as much as it takes to not have a general strike start up...
Withdrawal limits plus inflation is killing fiat savings A very effective waybto orange pill someone isnto start by asking them what do they think would happen if at some point, a significant percentage pf the population goes to withdraw theironey from the bank! Great conversation starter. Greece is a great example of what happens when shit hits the fan. They will freeze it all and take it to fix their mistakes.
Exactly, being an unsecured creditor doesn't matter to anyone until it does and you end up with a bail in situation like we saw in Cyprus or a bank run like we saw in Lebanon, then only do people realise they have no rights to that money
Lol most of your money is make-believe, just digits in a spreadsheet with a few redundant servers to claim you have purchasing power, IOUs that you hope you can claim and even with all that mental gymnastics, you still can't send it during certain times as if it requires so much effort to debit and credit balances, its hilarious
And it is constantly being devalued! How is it even possible that in such day and age where information is free and anyone can learn anything, most have no idea what fractional reserve means. No your money is not save in a bank. No you can't do what you want with it. Yes, it will be worthless in a decade