The Magic Money Machine, turning $1,000 into $4,000

By M. Joseph Benric

Life, Money and Gratitude # 35

Imagine if you could go to the bank and deposit $1,000 and in a short period of time it turns into $4,000. That would be nice.  

You can’t do that, but banks can. 

Welcome to fractional reserve banking.

“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of slight-of-hand that was ever invented.” Josiah Stamp

Next week: Fix The Money Fix The World

Until next time, be well.

M. Joseph Benric is the author of Graduation Gift, an introduction to money management and life skills.

He also writes a weekly newsletter called Life, Money and Gratitude.