Round And Round It Goes

Shuffling numbers to make a failed, corrupt system last a few days longer.

What Are Banks Doing with Their Depositors' Money?

"There have been numerous reports about the sharp decline in bank lending since the beginning of the financial crisis. The Wall Street Journal, for example, on Wednesday reported in an article entitled “Lending Falls at Epic Pace” that last year’s decline in lending is the biggest since 1942. It also provided the following chart to clearly make its point.

So if the banks are not making loans, what are they doing with depositor money?
Well, they are still lending, but not to businesses and consumers. They are lending to the federal government.
Banks don’t lend directly to the federal government of course, but buying US government paper accomplishes the same thing in the end. Depositor money is sent to the federal government, ether directly when banks purchase newly issued government paper or indirectly when they purchase US government paper from others, who in turn have used their dollars to purchase this paper.
If we mark the beginning of the financial crisis with the collapse of Bear Stearns in March 2008, data from the Federal Reserve show that since then bank lending has declined by $220 billion. During this same period, banks increased the amount of US government paper they hold by $337 billion."

Every time money changes hands the parasites charge interest. Guess who pays?