[null and void]

See paragraph 4 of post #167.

Gads you are dense. I’ve already surrendered on that point.

You OTOH, are still arguing that loans are less that deposits, yet you cite an example where even the most casual take shows that $100 of new money yields a total of $357 in loans. Further you biased your selection by selecting an example at 20% reserves, while ignoring the 10% chart when throughout this entire thread we’ve agreed on the reserve requirement being 10%.

My math skills show me that even at 20% reserves $357 is more than $100. What do yours show you?

Just as a reminder the chart at the same source, the one you are so studiously ignoring, has a 10% reserve requirements line that shows an initial $100 deposit allows banks to create $860 in new money.

I think $860 is more than $100. What do you think?

You’ve said the banks can only loan out $90 on that $100. I think +$860 is more than -$10. Do you agree?

[Halgr]

Applause

;-)

[nicmarlo]

*snicker*

[Toddsterpatriot]

You OTOH, are still arguing that loans are less that deposits,

Yes, loans are less than deposits.

where even the most casual take shows that $100 of new money yields a total of $357 in loans.

Yes, $357 in loans from $457 in deposits.

Further you biased your selection by selecting an example at 20% reserves,

I simply copied the example from Pelham's link.

My math skills show me that even at 20% reserves $357 is more than $100. What do yours show you?

My skills show that $357 is less than $457.

Just as a reminder the chart at the same source, the one you are so studiously ignoring, has a 10% reserve requirements line that shows an initial $100 deposit allows banks to create $860 in new money.

The formula is m=1/r. So if carried to the end, $100 in new money is loaned and redeposited until you have $1000 in deposits, $900 in loans and $100 in reserves.

You should notice that $900 is still less than $1000.

You’ve said the banks can only loan out $90 on that $100.

And I'm absolutely correct.

Gads you are dense. I’ve already surrendered on that point.

Finally. Banks cannot "create" money out of thin air. $10,000 in the vault does not allow $100,000 in loans to materialize because checks are "good as cash".

[Toddsterpatriot]

This is an oldie but a goody.

Still stand behind your bad math?

[Toddsterpatriot]

Is your math still this bad? LOL!