If banks aren’t lending depositors’ money, then what exactly are they lending?
Here’s the part most people never learn.
When you sign loan documents or a promissory note, the bank usually isn’t handing you existing money from a vault. In modern banking, the loan itself creates the deposit. The bank records the promissory note as an asset and then credits your account with newly created money.
That money did not exist in the system before the loan was issued.
Your signature — your promise to repay — becomes the instrument that allows the bank to create the funds and place them into circulation. In other words, the loan and the money are created at the same moment.
Once you understand this, it raises bigger questions about how the monetary system actually works.
Most people believe banks simply lend money they already have. But in reality, much of the money supply is created through lending itself.
And when you start to understand that process, the wider implications become hard to ignore.
Stay up to date with me on topics like this by commenting clicking the link below and you’ll get my signature protocol today for free.
https://www.andrewkaufmanmd.com/ultimate-detox-protocol?utm_source=youtube&utm_medium=social&utm_campaign=detox_minicourse&utm_content=bank-reel
source