“Banking is necessary. Banks are not.” ~ Wells Fargo 2004 Annual Report
Fact: The average American doesn’t have $400 in their savings account. This is linked to both poor financial habits and the way the banking system is set up. Banking is the most important business in the world! Without it, all business comes to a screeching halt. However, a little unknown fact is in order for banks to function, they rely heavily on us.
Unbeknownst to most, banks do not lend out their money, they lend out ours. What’s more, they cannot make a loan unless it has a deposit, and we are the source of where funds derive. These monies come from our deposits.
How were we convinced—better yet—lured to supply them with our hard-earned monies? With the help of consistent commercial advertisement, we are duped daily to believe they are the safest place to keep our monies.
Heard of the Fractional Reserve Lending System? Each time you deposit money in your bank, made consistently from our paychecks that create a guaranteed and indefinite supply of funds, banks 10x that deposit that can be then used to create loans that only banks profit from.
If you make a bi-weekly $1000 deposit acquired from your job to your checking account at your bank, they turn it into $10,000 by way of the Federal Reserve. The bank must keep $1000 on their books BUT… they can lend out 90% (or $9,000) of the now suddenly made up $10,000, affixed with a high rate of interest ensuring profit on top of the gift we give them with each deposit. Now multiply that by the hundreds-of-millions of folks employed and the billions they send to banks!
This is called Arbitrage or the act of taking advantage of the money market with said strategies not shared with the public. While these banking families continue to create bloodline wealth with each deposit, we’re lucky to get 1.8% through a savings account—which often requires a sitting balance of $10,000 or more.
The greatest fact is you don’t need banks to build sustainability because they were never designed for us to do so. You don’t need their loans nor to store your savings with them to create wealth. But there are a few strategies we can use to our benefit.
How would you like to become your own bank using similar strategies to create a coffer of resources so you’ll never have to apply for a loan, credit, or have to crowdfund?
In order to do so requires a will to forgo what you’ve been taught. I invite you to join the Cryptowoke Financial Sustainability Movement where I show you ways to live off your savings and investments without falling victim to job loss or being taken advantage of in money markets rigged to fail.
Join the Cryptowoke Financial Sustainability Movement
M’Bwebe Ishangi, Founder and Author
A Pot to Piss In: Intergenerational Wealth Planning for Black People
Cryptowoke Financial Sustainability Movement
Facebook & Instagram: @cryptowoke