Rising interest rates are usually presented as a necessary tool to cool down a hot economy. However, an investigative look into the Federal Reserve’s mechanics reveals a hidden reality where these rate hikes trigger billions in taxpayer subsidies for the world’s largest banks. Through a mechanism called Interest on Reserve Balances (IORB), the central bank pays commercial lenders massive sums simply to hold cash. This money, which historically funded the public treasury, is now diverted into private bank profits. While ordinary citizens struggle with soaring mortgage payments and credit card debt, the banking sector enjoys risk-free income funded by the public purse. This video exposes how the current financial system is engineered to protect the wealth of the elite at the direct expense of your economic future.
