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To: dollarbull
The problem with Todd's constant denial

Denial of what?

A short while from now he'll still be saying there's nothing wrong with fractional reserve banking

There's nothing wrong with fractional reserve banking.

and that banks don't create money out of thin air

Of course the banking system creates money out of thin air.

I expect he'll either disappear, or slowly try to change the subject,

No, I'll still be here. Pointing out your errors.

Why didn't you respond to my questions? I'll ask again.

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.

Try to answer this time.

331 posted on 03/14/2008 7:25:13 AM PDT by Toddsterpatriot (Why are goldbugs and protectionists so bad at math?)
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To: Toddsterpatriot
Of course the banking system creates money out of thin air.

Uh, Todd, that was my point, and also the point of the federal reserve bank of st. louis paper that I posted. Are you agreeing now finally?
333 posted on 03/14/2008 7:36:04 AM PDT by dollarbull
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