[dollarbull]

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?

[Toddsterpatriot]

Uh, Todd, that was my point, and also the point of the federal reserve bank of st. louis paper that I posted.

Uh, Bull, your point was that $200 billion in T-Bills added to reserves somehow creates $1 trillion in deposits.

Are you agreeing now finally?

That you still don't understand? Yes, I agree that you don't understand. Keep trying.

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 again?