"... Look at the U.S. banking system. Look how much capital is deposited in U.S. banks versus the actual reserves at these banks.
Bank of America, for example, holds $1.1 trillion in deposits. Against that, it holds $457 billion in liquid assets – a $643 billion shortfall. Withdrawal requests are instantaneous… It would take the bank much longer to actually sell those assets in order to meet withdrawals. And should that situation occur, the value of the assets it's liquidating would be impaired.
The Federal Deposit Insurance Corporation (FDIC) is the entity responsible for insuring bank deposits. But it doesn't have any money. The whole thing is a mirage… The power of the printing press is the only thing standing behind this insurance."
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