5 SECRETS the MEGA-Banks Don’t Want You to Know

The Mega Banks don’t want you to know their dirty little secrets. They disregard regulations meant to curb risk, blaming such for hurting capital markets and discouraging lending.  Meanwhile they lobby for regulations to give them even more power.

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would a revolution before tomorrow morning.” ~Henry Ford

It’s important to understand that the rules are fixed in favor of the big banks, those apart of the Federal Reserve.  And, once you understand this, you can make smart financial decisions with your money.

Here are 5 Secrets the Mega Banks don’t want you to know

1. The Money Banks Loan Is Not There… Or Theirs!
Banks loan MULTIPLES of depositor’s money.  The money that banks lend is created out of “thin air” with virtually NO RESERVES.

2. Traditional Bank Lending Creates Inflation.
Banks operate on Fractional Reserve Lending.  FRL allows banks to loan out $10 for every $1 on deposit. When money is put into circulation with no reserve, this causes inflation.

Diagram of how Inflation is created by The Federal Reserve.

3. Banks Make Nearly As Much On Fees As They Do On Interest.
According to BankRate.com and the FDIC, banking and service fees have escalated. Check your recent statement for “service”, “ATM” and “FDIC” fees.

4. Banks Are Failing At An Alarming Rate.
According to the FDIC, in 2012 there were 51 bank failures. Like most federal agencies, the FDIC is broke.

5. Banks Own A LOT Of Permanent Life Insurance, Called BOLI.
The FDIC recommends that banks own BOLI (Bank Owned Life Insurance). All major banks own BILLION$ in BOLI.

The FDIC Recommends BOLI

So, why would you want to turn your hard earned money over to someone else’s bank? When you learn how to become your own banker, you can escape the enticement of the banking monopoly and build your own wealth.

To learn more about banking and how you can utilize it in your life, download a free report: