Are Banks really on your side?
What do banks actually do for you?
Well I can think of three main things that they offer you. If you follow me on any of our social media outlets like Instagram, YouTube or Twitter. I’m sure you’ve heard me talk about this before.
I’ll refresh your memory.
Banks offer you three main things. The first thing they offer you is a place for you to store your money. No one is going to work a 40-60 hr week get paid then stash their hard earned cash under their mattress. So a bank offers you accounts that will hold your money. Basic accounts are usually a checking or savings that pay you about 0.5% interest on an annual basis.
All the while they are lending out 90% of your funds making THEM money - not you. That is one of the beauties of fractional reserve banking. They’re only required to hold 10% of your money. The rest they can lend out.
Pathetic.
The 2nd thing a bank offers you is a way for you to remit money or to send money. You get paid and you want to send some scratch to your aunty in another country. You can utilize a wire from your bank. Either in person or remotely. Of course your bank will happily tack on a fee for nothing more than them hitting a few keys on their keyboard. Usually between 7-12% of the total being sent depending on who you bank with.
Theft.
Now I know what you’re thinking I can use Venmo or a similar service and it’s perfectly free?! Hope I don’t burst your bubble but those services aren’t free. There is a huge difference between transaction settlement and payment. But we won’t get into that right now. I’ll save that one for a future piece.
But wow what a racket right!?
Finally the third major thing a bank offers you is access to financial services like home loans, auto loans, business loans, the stock market etc. Which are all great things but - and it is a big but in my opinion.
But do they really have your best interest?
Banks should have a sign that is posted at their entrance that says “we sell you money.” Think about that statement for a minute. Maybe you’ve never heard it phrased that way before but thats exactly what they do. They are a business that has the backing of the United States government. They are a licensed cartel and the only people on the planet that can launder money and when caught no one goes to prison.
Here are some excerpts from multiple online resources. I encourage you to research this yourself. All images are clickable to provide a better viewing experience:
Those are only a few examples that speak volumes and yet these don't even scratch the surface. Jp Morgan and Wells Fargo have been caught manipulating silver prices and have had cargo ships that they own caught with drugs onboard. But you won’t hear any of that in the mainstream media.
I implore you to satisfy your own curiosity.
Which brings us to our final subject. Why is there a growing distrust amongst financial institutions and it’s client base? I believe that crypto has been one major catalyst for this.
Enter Bitcoin in 2009
In 2009 the world was introduced to bitcoin by a mysterious character named Satoshi Nakamoto. This new digital money as it were dubbed touted itself as a way to circumvent the traditional monetary banking system. But more importantly forced many to reevaluate our current financial system.
It made people question the necessity for banks. I mean they are just a third party that is controlled by the Federal Reserve that seems to slither it’s way into anything you want to do that involves finances.
Why aren’t there more platforms out there that offer loans or access to financial services? That offer a way for you to store your money or send it from place to place. If you peel back the layers on supposed companies that aren’t banks who offer you some of these services I’ve mentioned - they are actually owned by them.
Now with emerging companies like Celsius that can leverage your crypto holdings. They can offer you high interest bearing accounts for your digital assets. These Companies are coming to the forefront and expanding globally.
Why would I ever hold assets in a traditional bank that pays me a whopping 0.5 % when a platform like Celsius will pay me up to 8%
These companies are here and money is leaving traditional banks. Billions and billions of dollars in fact. Banks are losing business but more importantly people are realizing that there are alternatives. They are converting their fiat to crypto and are creating more capital for themselves via these platforms.
Expectedly some of these platforms are coming under attack. Recently Coinbase was called out by the SEC (securities exchange commission) for offering a product called “lend.” In which they were going to pay users 4% on their crypto in an interest bearing account.
The SEC responded that they’re offering an “illegal security” (which by definition for the context of a potential lawsuit tying to this particular scenario is BS) and should cease from launching such a product or face consequences. So that is how it works. When banks are threatened or feel like there is competition on the horizon they will sik their dogs on whoever that may be. In this case coinbase. The bank’s dogs are regulatory bodies like the SEC.
Ultra pathetic.
With Gary Gensler at the wheel over at the SEC I don’t see this letting up anytime soon. But we can be optimistic that there will be justice one way or another. I can’t see them banning products or companies like this outright but I do see them having these guys bend over backwards just to be in the game. Which means probably forking over a ton of money. But only time will tell.
In closing.
For the longest time financial institutions have had their stranglehold on society. The clock is ticking and they must evolve or die. Competition drives innovation. Through innovation as of late via bitcoin and related technologies we have realized that we can custody our own assets without the need of a third party ran by a government for “our own protection.” We know it and the banks know it.
If there is one good thing that I can extract from all of this - it’s the fact that their fuss is confirmation that we have arrived.
Remember that the only true form of freedom is the freedom of choice.
Jk
