"They Will Keep You BROKE!" - What Banks DON'T TELL YOU! | Jaspreet Singh | Summary and Q&A

TL;DR

Banks make money by lending out the money you deposit, creating more money in the system, which leads to inflation and reduced buying power.

Key Insights

• 💵 Banks make money by lending out deposited money, while depositors earn minimal interest and may incur fees.
• 💵 Fractional Reserve Banking allows banks to create new money, but it also leads to inflation and reduced buying power.

Transcript

everybody knows that if you don't know how to manage your money your bank is going to skin you alive financially with overdraft fees and maintenance fees and credit card fees that's obvious but there's a hidden way that banks are keeping you poor that you really want to know about A bank's job is to make money not for you but for the bank and the i... Read More

Questions & Answers

Q: How do banks make money?

Banks make money by lending out the money that people deposit, charging interest on those loans and earning fees for various services.

Q: What is Fractional Reserve Banking?

Fractional Reserve Banking is a system that allows banks to lend out a portion of the deposits they receive, creating new money in the process.

Q: How does inflation affect the value of money?

As more money is created through the banking system, the value of each individual dollar decreases, leading to higher prices for goods and services.

Q: How can individuals protect themselves from the negative effects of the banking system?

Individuals can protect themselves by keeping a sufficient amount of savings, avoiding unnecessary debt, and investing in assets that generate income and store value.

Summary & Key Takeaways

• Banks make money by lending out the money you deposit, but this results in reduced buying power due to inflation.

• Fractional Reserve Banking allows banks to create new money by lending out a portion of the deposits.

• Depositing money in a bank can lead to high fees and low interest rates, benefiting the bank more than the depositor.