Money Handling Blog

This article is about how Banks make money. Not how they earn money in any sort of honest way but how they make money out of Thin Air. You see, banks can lend out more money than they actually have.  They can lend out a LOT more money than they actually have. For example, a bank could lend out a million dollars but only have $100,000 in deposits. How does it work? The bank sets up an account for the borrower and writes in their account a balance of million bucks. The borrower  goes out and buys himself a very...

Did you know? 40% of consumer transactions are still made with cash. Therefore, the probability of counterfeit bills ending up in your hands is still as real as ever. So much so, as many as 88 million counterfeit USA bills were seized in 2013, alone! The US Mint has made great efforts in recent years to introduce security features in the circulating currency in order to help reduce the extent of the problem. By combining their efforts with modern microprocessor-driven bill counters and highly sophisticated software; the level of protection to the local discerning businessman, is increased considerably.  Below, we've...

We work hard for our money. We sacrifice our valuable time and effort. The strange thing is that money today grows on trees – in reality it is worth only the paper on which it is printed. Modern money is given value only by the concerted belief and faith of the people. If people stopped believing in the value of the dollar and refused to accept it as payment, even for a moment, the entire financial edifice would collapse. Banks, insurance companies, stock brokers, real estate companies - all would come crashing down. Exactly this happened in the 1780’s. The...