[Toddsterpatriot]

Table:[7] Fractional-Reserve Lending Cycled 10 times with a 20 percent reserve rate (sources: The Principle of Multiple Deposit Creation[8], Federal Reserve Bank of New York[9], Bank for International Settlements[4])
individual bank	amount deposited	amount lent out	reserves
A	100	80	20
B	80	64	16
C	64	51.20	12.80
D	51.20	40.96	10.24
E	40.96	32.77	8.19
F	32.77	26.21	6.55
G	26.21	20.97	5.24
H	20.97	16.78	4.19
I	16.78	13.42	3.36
J	13.42	10.74	2.68
K	10.74
			total reserves:
			89.26
	total amount deposited:	total amount lent out:	total reserves + last amount deposited:
	457.05	357.05	100
	commercial bank money created + central bank money:	commercial bank money created:	central bank money:
	457.05	357.05	100

If you can follow the math, you'll see that subtracting total loans from total deposits gives you the reserves.

In your bank example, deposits are $10,000 loans are $100,000 and reserves are $10,000.

Let me know how you managed to make $10,000 - $100,000 = $10,000.

Do you work for the government? LOL!

I'd do it myself, but clearly my teaching skills aren't up to the challenge.

Your thinking skills need some help too. LOL!

[groanup]

I know your sources are good but isn’t there one step missing? For instance, Bank A loans out $80. But bank A does that by crediting the customer’s checking account with bank A. NOW bank A has deposits of $180 and a reserve requirement of $36 and $144 dollars for another loan. Voila! Money out of thin air.

[null and void]

Smooth! You slid that 20% table in to explain your 10% theory.

Since the chart with the 10% reserves yielded over $900 of created money (Which was what we were talking about in the first place, a bank creating money, something you have steadfastly refused to acknowledge) you ignored that part.

Now you are sighting a table that shows $357.05 of something called "commercial bank money created" to prove that commercial banks don't create money.

To be fair, my understanding of the underlying mechanism banks use to create money was overly simplistic and a bit flawed. They add a few more steps of shuffling the money back and forth between each other using customers as proxies to pump it up.

I didn't quite have the mechanism right, but I did have the results nailed. A hundred bucks of 'new' money is multiplied by banks into approximately a thousand bucks of useful money.

Do I work for the government? Only as a taxpayer.