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To: dollarbull
Fractional reserve banking isn’t a mystery.

Except to you and a few of your pals on this thread.

If I could take bunch of worthless, illiquid toxic waste securities to the discount window, and get a $200billion loan from the fed, which I then to repair my balance sheet so I can then lend 10 to 1 on it and further multiply the money supply

Let's start a new bank. We'll call it the "dollarbull bank of economic ignorance". Now have the Fed loan this new bank $200 billion in T Bills that DBEI will use as reserves. On day one, how much does this bank have as deposits? How much can they loan?

Walk it thru step by step, slow enough so even Andy and Travis can understand.

196 posted on 03/13/2008 11:21:44 AM PDT by Toddsterpatriot (Why are protectionists so bad at math?)
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To: Toddsterpatriot; AndyJackson
Why are protectionists so bad at math

Your tagline used to say "Why are goldbugs so bad at math" Did you change it after gold blew thru the all time high of $850, or just recently when it blew thru $1000?

Incidentally, I'm good at math, and my calculations show that gold has been doing pretty well vs just about anything except other commodities. BAC hasn't been doing that well, and Paulson is asking them to cut their divy...wonder when it will drop below 30?
257 posted on 03/13/2008 1:26:12 PM PDT by dollarbull
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