Bifalgorithm post

When you deposit $100, the bank keeps just $10 in reserve and loans out the remaining $90 at interest. That $90 gets deposited into another bank, which keeps $9 and loans out $81 at interest. This cycle repeats and is called fractional reserve banking, a system that legally allows banks to lend or invest 90% of your deposits, effectively circulating new money into the economy. Wealthy investors and big corporations are the first to get access to big loans at low interest rates. With this loan, they buy real estate, stocks and businesses before the money circulates through the broader economy. By the time those funds trickle down to the working class, they have already triggered inflation. The result? The banks collect interest by loaning out money that didn't belong to them. The rich use borrowed capital from the bank to acquire assets that skyrocket in value, easily covering their low-interest loans. And the working class are required to pay higher prices for rent and food, because the money supply has expanded while the number of actual goods are the same. And that's how the rich keep getting rich and the poor become more poor.

When you deposit $100, the bank keeps just $10 in reserve and loans out the remaining $90 at interest. That $90 gets deposited into another bank, which keeps $…