Re: £8bn profit for HSBC
Originally Posted by tarantula
On-line banking is the future. I prefer it, and have been banking on-line for about 10 years or so, so far without a problem, I ensure I take precautions.
It's convenient for sure but that convenience hides a hard truth which millions of people don't realise. The uneducated and unsavvy, those we would refer to as "Sheeple" believe that if their bank balance says they have £1000 that there exists somewhere in a bank or vault actual bank notes which belong to them. They believe that this £1000 actually exists somewhere.
The problem is . . . IT DOESN'T.
It is nothing but a number in a computer system.
This is the core problem with Fractional Reserve Banking. It creates "money" without it actually existing.
People really do need to read up on that and understand it.
For every REAL £1 that the banks own, they lend out £100 to the Sheeple. That £100 does not actually exist, it is entirely fictitious, vapourware, a made up number.
The banks then charge us interest for lending that fictitious money and thus create for themselves money from thin air, quite literally.
If this seems bizarre or fantastical to any readers here, I assure you it is true. This is the system the banks have been operating for years, inventing money that doesn't really exist and charging interest on it. It is fraudulent in the extreme and will ultimately result in the collapse of the financial systems, at which point millions of people will lose all or most of their perceived wealth. The bankers of course will be fine as will anyone who sensibly exchanged their savings in the form of something real and tangible like gold and silver or other assets.
This is why banks restrict how much money people can withdraw at certain times. The hard truth is that if everyone tried to remove the money from their bank tomorrow, the banks would simply close their doors because that money simply DOES NOT EXIST.
The entire system operates on the faith and assumption that everyone will NOT try to withdraw all their money at the same time. And that kinda works until everyone realises that the system is collapsing and at that point they all rush to the bank to try and withdraw their money. There have been many examples of this with banks/building societies collapsing and having to be bailed out.
If you added up all of the money in people's bank balances in every bank, every account, you would find that it outweighs the amount of actual bank notes and coins in circulation by a colossal amount. The vast majority of "money" simply does not exist at all !