HOW BANKS CREATE MONEY

Written by Tanner Larsson


Continued from page 1

Mary borrows $9,000 from Bank A and buys a car. The car dealer then deposits $9,000 into their account at Bank B.

Bank B Deposit: $9,000 Reserve (10%): $900 Lendable Amount: $8,100

Mark borrows $8,100 from Bank B and has surgery. The doctor then deposits $8,100 into his account at Bank C.

Bank C Deposit: $8,100 Reserve (10%): $810 Lendable Amount: $7,290

Sue borrows $7,290 and shops at Versace. Versace then deposits $7,290 into their account at Bank D.

Bank D Deposit: $7,290 Reserve (10%): $729 Lendable Amount: $6,561

Kim borrows $6,561 from Bank D and pays off her credit card,repparttar Credit Card Company then deposits $6,561 into their account at Bank E.

Bank E Deposit: $6,561 Reserve (10%): $656.10 Lendable Amount: $5,904.90

And so on throughrepparttar 112041 system. When M1* is measured, andrepparttar 112042 FRB totalsrepparttar 112043 checking account balances inrepparttar 112044 entire system,repparttar 112045 original $10,000 deposit will have created a total of $100,000 in deposits system wide.

*M1 = First level of money supply = All currency held byrepparttar 112046 public.

---- End Example ----

That in its simplest form is howrepparttar 112047 banks create money. Now considering how much moneyrepparttar 112048 banks are making off of every dollar you deposit, doesrepparttar 112049 0.01% or 0.25% interest rate you’re getting paid seem fair?

Not to me, but becauserepparttar 112050 general public is uninformed of this fact of life,repparttar 112051 banks and other financial institutions will continue to reap extraordinary profits from practically imaginary money.

Tanner Larsson is a veteran entrepreneur and the publisher of the award winning Work At Home Success Newsletter. Subscribe to his newsletter and recieve 4 EXCLUSIVE Bonuses valued at $276. http://www.work-at-home-resource-center.com


Reduce Your 30 Year Mortgage To 10 Years Using Mortgage Cycling

Written by Ted Kushner


Continued from page 1

Mortgage cycling allows a homeowner to build up equity in their home fast using a patent pending technique. So fast that it ends up paying off a traditional 30 year mortgage in just about 10 years.

At first I was skeptical on how powerful mortgage cycling is until I compared using a typical $150,000 loan for thirty years at 7% interest. After runningrepparttar figures thoughrepparttar 112040 difference between a bi-weekly mortgage versus mortgage cycling is dramatic.

Bi-weekly Mortgage Cycling Equity 1 year $1,520 $14,061

Equity 3 years $4,900 $44,972

Equity 5 years $8,787 $74,179

Equity 9 years $18,397 $136,429

No matterrepparttar 112041 loan amount, interest rates or mortgage term, mortgage cycling showed to dramatically cut downrepparttar 112042 payment time and interest payments to your mortgage company overrepparttar 112043 life ofrepparttar 112044 loan.

Imagine what you could do with all that extra money that you can put back in your pocket instead of your mortgage company.

Now mortgage cycling may not be for everyone. But for someone who hasrepparttar 112045 discipline it can be a very effective way of building uprepparttar 112046 equity in your home and to pay it off extremely fast versus using a standard bi-weekly option.

Ted Kushner writes about consumer issue topics of interests. If you would like to learn more about Mortgage Cycling and how it can benefit you visit: http://www.affiliaterevenuesources.com/mortgage-cycling .

© 2004 Affiliaterevenuesources.com


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