Unless people understand the banking system, which they don't, the money that they think is there, isn't. When the money gets loaned and deposited again, this creates more deposits than previously... but people who make these deposits think that they have normal money, when in fact only a small number of them would be able to get their money back. More people think that they have money than is in fact the case.
More people think that they own the money than in fact do. There is much less money than people think. The banking system allows (multiple) people to think that they have money, when they do not. The banking system is a trick in this respect.
Wednesday, 20 January 2010
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