How Ponzi Schemes Work: The Good, The Bad and The Ugly #shorts

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In today's video, we are going to talk about the fraction reverse banking system. Do you know that your money is not safe in the bank today, and also are you aware of what banks are not telling you about......All such questions will be answered today.

Financial frauds can go by many names. They can be small-scale, like a pick-pocket that takes $5 from you when you’re not looking, or, they can form the basis for how people buy and sell things and in many ways society as a whole. The most famous financial scheme is the Ponzi scheme, named for a Depression-era swindler that cheated people out of their money in a handful of different ways throughout his life, one time even inventing an entire fake town in Florida to sell people real estate that didn’t exist.

Even though the Ponzi scheme is something everybody’s heard of, not many people know how Ponzi schemes actually work. And almost nobody knows that our entire banking system is essentially one giant Ponzi scheme.

Welcome…to Why Banks are One Big Ponzi Scheme,

What is a Ponzi scheme?

So what’s a Ponzi scheme? You’ve heard the term before. You know it involves men in suits and financial gibberish nobody actually understands, and innocent people who have no idea what they’re getting themselves into when they invest with smooth talkers like Bernie Madoff who make themselves seem trustworthy but are really wolves in sheep's clothing.

But what actually is a Ponzi scheme, and how does it work?

A Ponzi scheme is a specific type of scam. You tell people to invest with you. You promise tause you’re not actually generating any returns.

Instead, when a new client gives you a large chunk of money, you use it to pay off your earlier investors, and you lie to them about where the money came from. The investors don’t ask questions because they’re happy with their 25% return for one month’s investment, and your new customers whose money you just stole patiently wait for the ship to come in for them too.

That’s how Ponzi schemes work. That’s why they’re so dangerous. Everything is real for the vast majority of the scam.

The fractional reserve banking system

Banks follow the same exact formula as Ponzi schemes. They take other peoples’ money and make you think it’s yours, the whole time praying they’ll keep finding new customers so the music doesn’t stop and nobody has to get off the ride.

To understand how this works, you have to know what the fractional reserve banking system is. If the name is boring, that’s because it’s supposed to be. Just like they say in The Big Short. Names like a fractional reserve banking system, collateralized debt obligation, and repo market are chosen specifically because they sound so boring that you’ll stop paying attention.

And once you stop paying attention, they can get away with anything. So even though the names are boring, it’s important to pay attention.

The fractional reserve banking system is the kind of banking system the vast majority of the world today uses. What it means is that every bank in the country is required to keep a certain fraction of their reserves on hand in cold hard cash at all times.

Why are Banks a Ponzi scheme?

This is why banks are the world’s biggest Ponzi scheme. They take money from one customer and give it to another, making them both think they have money in the bank when really there’s only enough for one of them.
That’s what runs on the bank are and that’s why they’re so hard for a bank to deal with. If everybody showed up to their local Chase tomorrow and asked for all their money, the bank wouldn’t have enough cash to give everybody their money, and the bank would have to close.

And that’s what happened to Bernie Madoff that finally got him caught. Investors started wondering where their returns were coming from and wanted out. When enough told Bernie they wanted to withdraw their money, he had no other choice but to let them know he couldn’t give them their money, because their money didn’t really exist.

So how do you protect your money?

If the system goes belly up like it did at the start of the Great Depression, you’re screwed, no matter what you do. If all of your money is in crypto, you’d still have to sell it to buy food and water and other basic necessities.
If your money is in gold or silver, same story. The best bet to protect your money in the case of a run on the banks is to diversify where you keep everything.

If you enjoyed this video, hit the Like button and comment below. Let us know if you think the banks are a Ponzi scheme and if so, what you’re doing to make sure you’re protected.

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