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Is Robert Kiyosaki Right About Money?

The Money Podcast

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The Frustrational Reserve Banking System

The fractional reserve banking system allows banks to lend out $10 on your dollar or £10 on your pound. I actually believe the banks see cash as a liability because it goes down in value. And then they immediately lend and invest it out, turning it from a liability into an asset. Like look at where the banks lend and invest their money. Stop market, real estate. The entire system is called the fractional reserves system. It's also printing money. They tell you to save money so they want you tosave money so they can lend out your money 10 times. So your dollar became worthless 10 times over.

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