Did you ever wonder who started the first bank? Here’s a little history for you. Back in the 15th-16th century, a goldsmith took in someone’s gold and stored it for them at a nominal fee. In exchange they gave their customer a receipt that was good at anytime to cash in for the real stuff. Bingo! The first bank in history!! Eventually, instead of giving out one receipt, they gave their customer a series of receipt that could be used to get the full load of gold or just a part of it. Bingo again! The first banking check was hatched!! This lead to a concept entitled, Fractional Reserve Banking, in which the bank lent out money and only keeping a fraction of money in reserves. You see when you make a deposit at your bank, you get a deposit receipt just like in the goldsmith days, but instead of putting your deposit as a debit on the banking ledger, the bank counts it as an asset and lends your money out to other people. They essentially create money out of nothing and collect interest on it. What gripes me about this system is that bankers don’t do one iota of work to earn their money. It’s all done on the backs of your labor and sweat. The goldsmith’s had a good thing going and it has carried forth to this day in the banking industry. Guess who is the biggest schemer?
The First Bankers . . . !!
Posted in Uncategorized