Reading time: 8 minutes

They do not need to rob you. They just need your trust.

When you deposit money, the bank does not simply store it for safekeeping. They multiply it out of thin air and you get nothing.

The modern banking system is built on one of the most misunderstood mechanisms in finance: fractional reserve banking. It is how a single deposit of £10,000 can be transformed into over £100,000 of circulating “money” that never truly existed.

Today, I will show you exactly how it works and why you were never meant to know.

Step 1: The Deposit Where It All Starts

You walk into your bank and deposit £10,000.

You believe it is safe. You believe it just “sits” there.

But here is what really happens:

The bank keeps only 10 percent on reserve (£1,000)

The other 90 percent (£9,000) is put to work instantly

They loan it out to someone else

You still see £10,000 on your balance

In reality, the moment you deposited it your money was already gone.

Step 2: Loan Number One The First Shell Game

Someone else comes in asking for a £9,000 car loan.

The bank approves it using your deposit.

The borrower buys the car.

The car dealer deposits that £9,000 into another bank.

That £9,000 is now treated as a fresh deposit.

Step 3: Deposit Loan Repeat

Here is the magic trick:

The second bank keeps 10 percent (£900) and loans out the rest (£8,100).

That loan ends up as a deposit in yet another bank, which repeats the cycle.

From £10,000 to £9,000 to £8,100 to £7,290…

The chain continues until your original £10K becomes over £100K in circulating “money.”

But none of it truly exists. It is all numbers on a ledger.

Step 4: The Hidden Formula Banks Use

This process has a name: Fractional Reserve Banking.

The formula is simple:

You give £1

They lend £9

That £9 becomes another £10

Repeat endlessly

In other words, they are printing money using your trust as collateral.

Step 5: Who Really Benefits?

Spoiler: Not you.

Banks earn interest on every loan they issue

You get maybe 2 percent interest while they make 20 percent or more

Governments borrow from these same banks

Inflation quietly erodes your purchasing power

You deposit. They multiply. You lose.

Step 6: Why They Will Never Teach You This

They keep you focused on working hard for money, not understanding how it is actually created.

You were trained to:

Trust banks

Ignore inflation

Accept low interest

Stay dependent on debt

The less you know, the easier you are to control.

Step 7: The Fragile Lie Holding It Together

The system works only as long as:

People do not withdraw en masse

Nobody asks too many questions

Everyone plays along

If the public truly understood the mechanics, the system could collapse overnight.

It is not about safety. It is about control.

Step 8: The Final Truth

Every pound you deposit helps build a financial empire you do not own.

They turn your savings into debt.

They use your trust to create money out of thin air.

And they give you inflation in return.

Do not keep this to yourself. Share it and wake people up to how the banking illusion really works.