What’s to be suspicious about ? You put money in a bank account you become creditor to the bank, at interest.
After reading nostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a 's Book I had the following surprising insight:
**If you have money on a bank account, you owe it to yourself, it is not your wealth!**
How that? Let's look on the assets and liabilties in a fiat system where Central Bank assets are mainly treasuries:
If you have $1000 deposit on a bank account, this is your asset and your bank's liability.
The bank has these $1000 as a reserve asset at the Central Bank account, where it is a liabilty for the Central Bank.
This liabiltity is covered by a bond issued by the government.
This bond is a liability for the government. And now: What is the asset to cover the liability of the government?
**It's YOU, the taxpayer!** You have to pay to the government the $1000 you have in your bank account. Full circle YOU -> Government -> Central bank -> Bank -> You.
O.k. It's heavily simplified. In reality:
* There is a time lapse between bond issuance and tax payments.
* Government nominal debt never diminishes over time, so the liability is covered by more debt.
* Tax burden is not evenly distributed among taxpayers.
* Central bank has also other assets (Deutsche Bundesbank mainly 80% bonds from other countries and liabilities from other national central banks in the Euro System). So taxpayers of other countries owe me most of the $1000.
* and probably many more other details.
But nonetheless a nice thought experiment for gettings suspicious of money in a bank account.
Discussion
Your credit is covered by government debt which you have to pay off, so you are the creditor to yourself. Simplified, but interesting.
Yeah fdic insurance- up to $250k but above ?
Oh you in Germany ? Don’t know what the banking system particulars there is like
It's less about risk more about understanding how the money system works.