Allow me to illustrate how deeply government has been captured by the banking system.
Today, banks earn roughly 5.7% risk-free by parking deposits at the Federal Reserve. Meanwhile, depositors are paid 0.1–0.5% on their savings. That spread isn’t market driven… it’s policy-enabled. The yield flows to banks as profit, not to the people who actually own the money.
Worse, this yield is risk-free. While banks collect guaranteed returns from the Fed, they are not lending meaningfully to households, small businesses, or local communities. Capital that should circulate through the real economy instead sits idle, earning returns subsidized by public policy.
Since 2008, banks have collected several trillion dollars in interest on reserves… funds that could have reduced the federal deficit or directly benefited taxpayers.
Now those same banks are lobbying to kill market-structure legislation so crypto companies can’t pay consumers interest on stablecoins.
This isn’t about safety.
It’s about preserving a banking monopoly on yield.
That monopoly underwrites obscene compensation structures… $100M+ executive bonus packages, while savers like us are systematically stripped of purchasing power.
The system isn’t broken.
It’s working exactly as designed… for banks & politicians.
Everyone else is being robbed.
