How Banks Manipulate Us With Interest Rates—and How You Can Leverage Their Tactics for Your Business and Investments

Jarrett Luehrsen, Austrian Wealth

Most people think they understand how banks make money: they take your deposits, loan them out at a higher rate, and earn a profit on the difference. But the reality is far more profitable for banks—and far more manipulative than most realize. Banks have been using a hidden strategy to earn 200% or more on interest rates, all while keeping you in the dark. The good news? You can take control of this game, cut out the banks, and use the same strategies to finance your own business, investments, and future.

The Hidden Mechanics of Banking

Let’s break down a typical banking transaction. You deposit $10,000 in the bank, and they pay you a measly 1% interest. That means you earn $100 in a year. Meanwhile, the bank turns around and loans that same $10,000 to someone else—maybe even back to you in the form of a car loan—at 6%. The borrower pays $600 in interest. Most people assume the bank’s profit is the 5% difference ($600 - $100 = $500).

But here’s the reality: the bank didn’t just make 5%. They made a 500% profit. How? They paid you $100 to use your money, then made $600 off it. In terms of return on investment, the bank spent $100 to earn $500. They’ve multiplied their money five times over, using your deposit. And they didn’t even risk their own cash—they used yours.

How to Use This Strategy for Your Own Finances

Here’s where it gets practical. What if, instead of letting the bank use your money to finance loans and investments, you used this same strategy for yourself? What if you became your own bank, cutting out the middlemen, and financing your own purchases, business expenses, and investments? That’s exactly what private banking allows you to do.

With private banking, you store your money in a safe, secure account—one that grows your wealth, tax-free, just like the banks do. But here’s the key difference: instead of the bank loaning your money out and collecting interest, you control the cash flow. You can use your own money to finance major purchases, invest in your business, or seize opportunities—while your cash continues to grow.

Imagine this: Instead of borrowing from a bank for a business loan and paying them interest, you loan the money to yourself. You can borrow against your own capital and pay yourself back—earning interest on your own money. You’ve now cut the bank out of the equation entirely. You’re keeping the profits, and your original capital continues to grow uninterrupted.

How Banks Create Money from Thin Air—and How You Can Use It

Banks have another trick up their sleeve: fractional reserve banking. For every dollar you deposit, they only have to keep a small fraction of it in reserve—typically 10%. That means if you deposit $10,000, they can lend out $90,000 using that same deposit. They’re essentially creating money out of thin air, multiplying profits on a single deposit.

Now, imagine using this same principle for your own finances. With private banking, you can borrow against your own capital, whether it’s to fund a business expansion, purchase a property, or make a major investment. And just like the bank, while you’re using that money, your original capital continues to grow, tax-free, in your private bank.

This strategy isn’t just for major corporations or the ultra-wealthy. It’s for anyone who’s tired of letting banks profit off their hard-earned savings. By becoming your own banker, you can finance your own future without relying on traditional banks or losing profits to middlemen.

Financing Your Own Business: A Practical Example

Let’s say you run a business and need $50,000 for new equipment. Normally, you’d go to a bank, take out a loan, and pay them 6-8% interest on that loan. You’re now beholden to the bank’s terms, their interest rates, and their payment schedules.

But with private banking, you can borrow the $50,000 from your own account, at a lower interest rate (or even no interest at all), and pay yourself back on your terms. You’re not only financing your business without external debt, but you’re also capturing all the profits that would have gone to the bank.

Even better, while you’re using that $50,000, the remaining balance in your private bank continues to grow. Instead of losing out on compound interest, you’re earning it while simultaneously using the money.

Cutting Out the Middlemen for Life

This isn’t just a one-time strategy. Once you set up your own private banking system, you can use it over and over again. You can finance vehicles, real estate, business expansions, or even investments. The banks are no longer in control—you are. Every dollar you borrow is a dollar you keep in your own financial ecosystem, compounding and growing your wealth.

Instead of watching banks make massive profits by manipulating interest rates, you can flip the script and start using those same principles to build your own wealth.

It’s Time to Take Control of Your Finances

For years, banks have been quietly using your money to make massive profits—while keeping you on the outside. But now that you understand how they manipulate interest rates and leverage other people’s money, it’s time to take back control.

With private banking, you can finance your own future—cutting out the banks, growing your wealth, and taking full control of your finances. If you’re ready to stop playing by the bank’s rules and start using the same strategies they’ve been hiding, let’s talk. I’ll show you how private banking can help you become your own banker, finance your own life, and build real, lasting wealth.