Explaining how banks create money from @womp_tomp

Name: Explaining how banks create money from @womp_tomp
Uploaded: 2026-02-12T16:02:42.000Z
Channel: womp_tomp
Description: The creator explains that when a bank issues a mortgage, the money is created out of thin air by typing numbers into a computer. He connects this to the fractional reserve banking system, the Federal Reserve, and fiat currency, arguing this system causes the divergence between wages and home values (the Cantillon effect) and fuels the growing national debt.

The creator explains that when a bank issues a mortgage, the money is created out of thin air by typing numbers into a computer. He connects this to the fractional reserve banking system, the Federal Reserve, and fiat currency, arguing this system causes the divergence between wages and home values (the Cantillon effect) and fuels the growing national debt.

Creator: @womp_tomp on Instagram

Transcript

You take out a mortgage, the money doesn't come from anywhere. They type the number into I swear, they type the number into a computer and hit no, and then $500,000 appears out of thin air that you now owe these people. Did you know that? Did you know that they can just make money like that? Because we are a fractional reserve banking system, which is backed by the Fed, which means absolutely nothing. It means banks can continually loan out debt and create fake money out of nowhere because we're

Topics: Politics, Business, Education

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