[Toddsterpatriot]

Let’s say you deposit $1000.00 in your bank. The bank will set aside a reserve, say for the purposes of this example, 20%. So the bank then sets aside $200.00. That leaves $800.00 available for them to loan to the next loan applicant, which they promptly do.

Loaning less than their deposits is not "CREATING" money. Loaning more than their deposits would be. Glad you figured that out.

[iconoclast63]

Todd.... please ... using my example....explain where the bank got the $800.00 it loaned out of the $1000.00 deposit that you withdrew the very next day?

Hmmm?