How the Banks Rob Your Savings of Value by Printing Money and Creating the Inflation that Drives Up Housing Costs that Force Millions Into Debt Slavery

The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.  Thomas Jefferson

Banks create money out of thin air by creating loans.

You get a mortgage for, say, half a million, and the bank adds $500,000.00 to the balance in your account. Where'd that money come from? Nowhere. The bank just created it with a book-keeping entry, and now it's charging you interest on the strength of that book-keeping entry. Let the banks keep creating their own money and soon you've got real inflation.

From the graph below, you can see that the Canadian money supply has grown at the rate of around 7.5% a year for the last 30 years. The Canadian economy, however, has grown at the rate of only around 2.5% a year. So monetary inflation has exceeded economic growth by about 5% a year, meaning, very roughly and ignoring many complications, that what cost a dollar in 1990 will cost around four dollars today.

Image Source

Good business, banking, innit. Create money at no cost and lend it to the suckers at interest. The suckers spend the money, thereby driving up prices, which creates the need for more borrowing, so more money creation and ever bigger bank profits.