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It is not our partner’s responsibility to ensure all posts or questions are answered. Banks can print around 10x more than what you deposit to lend out!! for them If your 10k makes 1% and they use it to mortgage you at 3% in a year…they just made a profit of $2900 or 29% on YOUR money!! Does running a blog such as this take a massive amount work?
This is how 97% of money (in the UK) gets into circulation. When banks “make money”, they literally “make money”.
Thus, everytime the bank makes a loan, the value of all the money in circulation is devalued by inflation as a result of the addtional input of money into circulation via the loan made. It’s not entirely accurate that banks are merely loaning out my savings to someone else at a higher rate.
Obviously, it’s not because your bank is feeling charitable. The kind of money that leads to the obscene Wall Street bonuses we so often hear about.