Where do Banks Store their Money ? -- Economic Collapse -- Stock Market Crash . 4K

Banks do not store your money; in fact banks do not even have your money. They quickly lend it out to someone who can use it, since you apparently don’t need it right now. Welcome to The Atlantis Report . Banks are required to keep 10% of their deposits, just in case a lot of people need their cash at the same time. A small amount of this is physically stored at the bank, and in the ATM machines. The rest is stored at the Federal Reserve Bank, where they can have it trucked over if they need it. For that matter, the Federal Reserve Bank probably doesn’t actually have the physical dollar bills sitting there, but they have records of how much they should have, and they can print them up when needed. The rest of the bank’s money is “stored” in the form of promises from borrowers. That includes the mortgages and car loans from ordinary people, as well as “commercial paper” which are business lines of credit. Records of these promises can be stored electronically, or sometimes in big buildings of file cabinets. Most money is virtual. The Federal Reserve has a warehouse on the East Cost where they keep hay bale sized bundles of cash on Shelves in reserve for banks and people that need physical cash. As the Fed/Government is the one that makes the money, while it has the physical notes, it is as if the money doesn’t exist. Banks keep enough cash in their vaults to meet their day to day cash needs. The rest of their money is deposited with the central bank (Fed) and exists as a bookkeeping entry at the Fed. Note that the money the banks have is just a fraction of what the banks owe their depositors. almost all money is now held only in computers. How it works? Like any sort of fiat currency, it's based on faith. As soon as people stop believing in it, it stops working. Banks will have accounts where they are required to have a set level of money in reserve (in case of disturbing lack of faith), but otherwise, they like to have money in other peoples accounts having lent them the money at interest. Money is a promise, a contract. 90% of it is not cash. Just a ledger entry.








The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more