Thats why i agree with bill. Banks are a big scam. But now espcially in New York. Alot of places stopped accepting cash all together. U have to pay with a card or one of the apps....
That hit home when Bill was talking about the people in the financial sector talking about investing in precious metals and growing gardens and stuff. I know lots of super successful people who are bankers and in finance. Many of them are very into purchasing gold, silver, and other things with tangible value. They are also very into staying out of debt and maintaining emergency supplies and food storage. They are not who you would consider "preppers" they just know how flimsy our monetary system is and they know that your money could be devalued in a heartbeat. So if you have $500,000 in your savings account, it could be worth almost nothing in no time. But if you have gold, silver, and usable items like guns, tools, ammo, etc. you are in good shape because those items will ALWAYS be in demand. In fact, many well off people I know actually look forward to recessions because they have made themselves recession proof and they look at a recession as a good time to buy properties and collectible things that usually go for a ton of money, sit on them for a few years until the recession is over, then sell them for a small fortune. Think about it, if you are hit by the recession and you have a babe ruth baseball card worth $100,000 and now you need the money and nobody is in the market to buy expensive collectibles during a recession, it is a buyers market. So if you have the money, you can buy shit like that for pennies on the dollar because you though ahead and can sell it when the economy gets better. There is a reason why the rich get richer, and it has nothing to do with privilege or someone holding you down, it is because they have to foresight to take advantage of every situation.
Rich people are great at exploiting recessions and that's one big reason why wealth accumulates at the top over time in an unchecked capitalist economy. I openly hate on them for doing it but heartless as it may be.. I am secretly jealous of that strategy.
@@jessemedina4482 Hey, if you can't beat them, join them . I do this on a much smaller scale. I buy and sell collectible guns. When COVID hit us hard last year, I was in a position to buy many collectible guns. Some people needed money fast because they did not put aside a savings account for a rainy day like this. I bought quite a few guns for around $500 each give or take and have now started selling them for over $1,000 each give or take. I have already doubled my money easily AND decided to keep about five of the best ones.
Bank of America does that too. Went in to get cash to buy a car (10k) and they told me no strait up. I have to make a appointment three to four weeks in advance. I closed all my accounts the next week and took my money to a local bank.
Luke Powers so they are inventing 8 million dollars that they don’t have. Basically if everyone went to get their money the bank would be 8 million short
Chris Chapman That’s not how I understand it. How I understand is the customers put in 9 million, and they only keep 1 million at the bank. They aren’t inventing money, they’re just lending out the vast majority.
@@seanmatthewking Nope. They create it out of nowhere it with double entry accounting. Their only limit is the required % of reserves they are told to keep by the Central Bank (The Federal Reserve).
Said the bank, seeking "maintenance fees". 5/3 steals $5 from me every month because I don't make enough money to meet the threshold, and one time I let it sit overdrafted -$5.00(their maintenance fee) for a few days and I got a letter from them in the mail from them basically saying"we have collection agencies, we have many ways of getting that FIVE FUCKING DOLLARS from you if you don't comply.".
Bill is right and you can withdraw all your money if you announce your intention one day in advance so they make sure to have enough cash for you and daily operations.
bill is exactly right I went to my credit union years back because I was going on vacation and I asked I want $5,000 and I had over $15,000 in the bank and they said no we can't do that right now it took him 24 hours to get my cash together I have to come back the next day to pick it up unbelievable bill you are exactly right and so is your Banker friend banks are ripoff
Bank of America does the same. December 2018 i tried to withdraw 10k to buy a car and they told me no, i have to make a appointment at least 3 weeks in advance. Eventually i got 5k from my own account with a balance around 40k and completely closed my account after making a appointment for 2 weeks ahead and just moved banks. I couldn't believe it.
I kept hearing George Baily giving that speech in the savings and loan. " You got it all wrong, your money's not here, it's in joe's house, and bill's house!"
This happened to one of my friends at HSBC when he tried to withdraw £400 from the branch for a holiday. They told him no, we can only give you £50. After a LOT of arguing / debating he finally got £300. Seemed like a hollow victory at the time.
Thanks Bill, for educating ppl on this and all the rest. Im a lawyer and I can't believe the "fractional" reserve system they get away with where, as you say, banks are allowed to essentially counterfeit money. I do want to quibble with you though- I think it's a good idea to get a mortgage, bc YOU will have the house and the money (at a low interest rate- dont do it if the interest rates go way up).
A friend of mine did this at an Indian bank, he withdrew $25K. They started with the Rupee equivalent of 50s, then 20s, the 10s, then 5s, 1s, finally some in 50 cents, and 25 cents. It filled 2 large duffel bags
Here's how fractional reserve banking works. When $1 is deposited, $0.90 is loaned out. So $0.10 is in the bank, and $0.90 is outstanding. The $0.90 gets deposited and then $0.81 is loaned out. At this point there is $0.19 in the bank and $1.71 outstanding. When the $0.81 is deposited, $0.729 is loaned out. At this point $0.271 in the bank, and $2.431 outstanding. It ends up being the Maclaurin Series and I'll post the math in a different post. It calculates to 10 to 1 in the money supply.
ItsAllAboutGuitar I think it's more like this: when you deposit 1$ in the bank the bank creates 1$ in "credit" in your account. Now the state is 1$ in assets of the bank (paper money) and 1$ in credit(electronic money) on your account. So far so good. The bank is then allowed to "extend credit" by way of private debt. The bank can extend 100% - RESERVE RATIO of the assets. If the reserve ratio is 10% that would be 0.90$ in new credit for a borrower. However, the borrowers debt is now an asset of the bank as well so the game continues. New asset(debt) is 0.90$, so bank is allowed to extend 90% of it = 0.81$ of new credit for yet another borrower. This goes on and on until it reaches possible end. At the end maximum credit from 1$ would be = (1/(1/10))* INITIAL DEPOSIT = (1/(1/10)) * 1$ = 10$. So, 10$ in credit, 1$ in paper money and 9$ in private debt. Obviously, banks can't give you "your" money if more and more people are demanding their physical money because thre isn't enough. Most of the electronic money is backed by private debt. The difference between your example and mine is that in your example phisical money disappears but it deosn't really. The bank creates more electronic money and there isn't enough to meet demands in times of bank runs etc.
+Arnes Arnautović I heard there is no more required minimum percentage for banks and they have much less than 1% of their total assets in liquidity. That's just hearsay though I might be wrong.
+kalphitekil Here's the convergent series: ∑[n = 0:∞]{0.9^n} = 1.0 + 0.9 + 0.81 + 0.72 + ... = 10 Thus, in this case, the money supply added approaches 10 × from the original deposit.
Land and rental property?......not so much. The other stuff?.......absolutely. My reasoning is this. In the U.S., it's well known that the government is run by the bankers. So.....you rush to pay off your home, rental property, etc. It's yours, free and clear, right? That's what most folks would assume. Guess what? You still have to pay property taxes. Who's the government in bed with?....The banks. What's to prevent the government from raising your annual property taxes to Ohhhhh, say $1 mil a year. Do you have that kind of cash laying around? I sure don't. Just some food for thought.
Maurice Johnson So now the government takes your home in a tax foreclosure. They sell it at auction, it gets a mortgage and the banks make money again on the same house they made money on before.
Some of the best Monday Morning Podcast evah right heeyah dood! I imagine being a stand up comedian on the road makes you a most deep thinker. I know traveling as a musician did for me. At least I had band mates to bounce things off of once in a while. This poor bastard was all alone with himself. Most people can't handle that. Ooooohhhh Jeeeeeezuuusss. All that time to spend with yourself. You end up exploring more avenues and come to some pretty big realizations. Bigger than most ever get the time to even consider unless it's brought up to them by someone like a Bill Burr. Mad respect to all you solo flyers out there... going deep for all us, unwashed and still slugging it out in the trenches.
The reason your local branch bank doesn’t have several hundred thousand just sitting around is because they tend to be robbery targets and keeping minimum cash on hand keeps losses down.
This channel has a good taste of humor, been laughing my ass off to the selection of clips. My subscription and likes have definitely been earned, 10/10.
Same thing happening in the US of A with over $10K withdrawals. Just tell 'em you're going to vegas to spend it on strippers and whiskey. You can always change your mind once the cash is in your hand.
Good for you Bill. At least someone else knows how it works. Ask 100 people about this and 99 will have no clue. Looks like most people here get it too. I didn't learn about fractional banking and the Fed until I was probably 27-28 years old.
put 25% in a national bank, 25% in a local bank, 25% cash/gold-silver in home safe, and the other 25% cash/precious metals in a storage unit. and don't use bank saftey deposit boxes.
HSBC was getting into trouble for being complicit in money laundering. Those restrictions were implemented because large withdrawals are commonly associated with criminal activity.
The percentages are actually even more staggering than what you say Bill. Have a read of "Modern money mechanics" which was released by the Federal Reserve quite a while ago and it explains the mechanism. Scary shit.
I took $3,500 out of my bank in cash and they yelled at me. I said if you don't give me my money you can close all my accounts here right now. I hate fucking banks.
My bank has computer ATMs that connect to a teller via the internet. So it's the same as the ATM outside...and I've always had a daily withdrawal limit to.
They can't prevent you from changing banks. It's your fucking money, who do they think they are? "Y-Y-Y-You're moneys in Bill's House, and Bob's house....."
It doesn't matter. Because the new gets its value from the money already in existence, they can steal the value of your "vault money" without ever being near your home...
They don't let people withdraw the money because they don't have it. That guy who just took out a loan to purchase a house or a car just left with it lmao
Burr is on it bro. He knows. He knows how it works. I hope they don't off Bill like they did Bill Hicks. They don't like comedians making the truth funny and popular.
sephirothsdemise It is not my position that all regulation is good. Far from it. It is, however, Ron Paul's position that all regulation is bad, or very close to it. He doesn't want to stop banks from being able to lobby the government, I don't know where you got that impression from.
My money is never in the bank. As soon as a check or payment goes in its bacl out again. I have cash and put the rest in gold/silver until i can buy a house.
