MONEY DOES NOT EXIST!

One of the most sinister statements I have discovered during my research about about money, is that MONEY DOESN´T EXIST!. To you reading this, it may sounds unbelievable... but unfortunatly it´s true. Most of the money in the world are just numbers on your statement or digits on your computer ... not real money. That is, if you count the real money that exists in the vaults of all banks in the world and it´s compared to the virtual money, could only cover 10% of it. The rest of the money doesn´t exist.
And worst of all is that this is permitted by the law of the countries through a mechanism known as "cash ratio." It is an economic fact that a bank only needs to have in its coffers 10% of all depositors' money ... it's a matter of "probability." What is the real chance that at any given time depositors withdraw more than 10% of funds from the bank? Well ... very low. Then the loan portfolio of a bank is based on the remaining 90%. It can be "borrowed" and charge interest on them.


But in real world, 9:1 rule doesn´t work like that. You make a $1000 deposit (according to 9:1 rule, the bank should keep $100 and lend $900) ... but what really happens is the bank keeps $1000 and lends $ 9000! How much money is in the coffers? ...Only $ 1000. How much for trading? ... 9000,oo new bucks that are now on the streets. The bank never had the money... They created it!...and they get interest paid as a plus. Besides that, money usually involves a warranty like a house, a company or a car. What happens if you do not pay? The bank takes it all: your house, your car, your whole life ... plus interests... in exchange for NO INVESTMENT!

Cool eh?
I do not want to create arrays with this opinion. Just considered it necessary to emphasize the role each part plays in money management. The debt to banks is dangerous and must be well managed. At the same time, investment papers, certificates, bonds, etc., must be balanced with investments lines that do not suffer the vagaries of inflation and devaluation, as precious metals, real estate (although the recent crisis, but go with care), productive investments, manufacturing, etc.

You have to have as much information as possible and build your own method to get to financial freedom... But we are all in it..isn´t it?