Anyone who works probably know what direct deposit is. The company automatically puts your paycheck into your bank account.
Well I hate the term direct deposit because it is so misleading. A more aptly named service would be direct loan. The root definition of deposit means putting something, anything in a designated spot. The numbers in your account are really just a ledger of what the bank owes you. The currency put into the account doesn't stay there. When you put currency into your account it automatically becomes the bank's to invest however they want to make money for themselves. In the United States since 2020 the Federal Reserve has changed the rules banks have to adhere to from fractional reserve to no reserve. The bank doesn't leave any of what you put in, in reserve.
The maddening thing is when you loan to a bank, you need preexisting currency. You have to take your earnings to the bank. When they loan to you, they just add digits to your account. That money was created out of thin air for your loan and did not exist beforehand. It did not come from their accounts at all AND then they expect you to pay interest on nothing! Once the loan is paid off that currency created for the loan ceases to exist but they made a nice profit in interest.
Well I hate the term direct deposit because it is so misleading. A more aptly named service would be direct loan. The root definition of deposit means putting something, anything in a designated spot. The numbers in your account are really just a ledger of what the bank owes you. The currency put into the account doesn't stay there. When you put currency into your account it automatically becomes the bank's to invest however they want to make money for themselves. In the United States since 2020 the Federal Reserve has changed the rules banks have to adhere to from fractional reserve to no reserve. The bank doesn't leave any of what you put in, in reserve.
The maddening thing is when you loan to a bank, you need preexisting currency. You have to take your earnings to the bank. When they loan to you, they just add digits to your account. That money was created out of thin air for your loan and did not exist beforehand. It did not come from their accounts at all AND then they expect you to pay interest on nothing! Once the loan is paid off that currency created for the loan ceases to exist but they made a nice profit in interest.
