Is Fractional Reserve Banking Really That Bad? (Explained)

Our modern banking system relies on something called fractional reserve banking. Many are critical of this system, but what is it? And is it really that bad for you, me, and the world economy? Let's talk about it on Kyle Talks Money.

✅ Subscribe for More Videos:

***NOT FINANCIAL ADVICE. DO YOUR OWN RESEARCH***

✅ Audible 30-Day Free Trial: (Affiliate)

✅ Follow on Instagram:

==============================

Music on YouTube: The Thought of You by TrackTribe

#FractionalReserveBanking #MoneyMultiplier #KyleTalksMoney

Video Disclaimer: The content in this video and on this channel are for educational and entertainment purposes only. This video doesn't constitute financial advice of any kind. All opinions are my own.

Affiliate Disclaimer: Some of the links may be affiliate links and that means if you make a purchase on those websites using my link, I may receive a commission based on that sale at no extra cost to you. This helps me create and publish more content on this channel.

[Scraws]

Or be like chase. Charge people to hold their money, charge people to use their money.

[theybecameus]

fractional reserve banking enables modern day slavery, it causes inflation, by which your purchasing power goes down and inflation gets compounded every year. This system is intentionally made to keep us all poor.
There are two options (Fractional Reserve banking= which drives up prices of goods and services expotentially overtime.

And then there is Full Reserve Banking- which charges a very small fee and inreturn provides banking services and also doesn't contribute to inflation.

I would any day choose Full Reserve Banking over FRB.

[QDSLand]

The dollar was worth more 20 years ago, and more than that 40 years ago.
In a continual down value of the dollar, the trend speaks for itself... The value of the dollar is withering away more and more. If it was a stock, would you trust it ?... I don't think so

[matthewrutters]

You're omitting the fact that it leaves the creation of money in the hands of private banks. They are only required to keep 10% in reserve, and they are incentivized to loan the rest out. That means that our money is continually being used to bid up the prices of goods and services when we think it's just sitting in the bank. Because banks don't give out loans for groceries, this inflation is only really seen in assets that coincidentally don't factor neatly into cpi. In fact, the stock market doesn't factor in at all. The cost to borrow money has been driven into the ground to the point that people who have no serious financial education are expected to invest in the risky stock market instead of cd's and bonds just to offset inflation. Savers are being sacrificed at the altar of growth and gdp. Fractional reserve banking, and central banking, are deeply flawed at best and are cons at worst.