In the US the reserve requirements range from 3% to 10%. So the money lent is 10x to 30x that deposited.
LOL, nice work if you can get it.
Imagine having ten bucks and being able to loan out $300 in credit to other people while charging them interest on that imaginary money.
And then having cops come and arrest them for theft if they don't pay you back all of your imaginary money, plus interest, in real money.
That's literally what banks do.
Okey, dokey. So what happens when banks can only loan deposits, or possibly a fraction of them? Suddenly the amount of money available for loans is only 10% (or considerably less) of what’s available now.
What do YOU think that would do to the economy?
That is, BTW, where banking was stuck for thousands of years. Only with the early modern period and the development of the modern banking systems you hate did the world start climbing out of its previous level of poverty.
But we can go back to that if it pisses you off so much that its unfair for banks to loan more money than in their deposits.
Do cops really arrest you if you don’t pay back a loan? I thought we gave up debtors’ prison a couple decades ago.
You could try that. After the first $10 in loan checks clears, your bouncing loan checks will put you out of business....and probably in jail.
That's literally what banks do.
LOL! Hilarious!