On top of? Don't you mean they can loan $900 million?
Yes, I mean on top of. According to the Fed's own documents, this is how banks operate:
"Of course, they do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers' transaction accounts. Loans (assets) and deposits (liabilities) both rise..." -
Modern Money Mechanics
That's not enough to close this years budget gap, let alone the national debt.
All bondholders would be repaid with U.S. Notes. We would owe nothing to anyone.
Sorry to break it to you, the Congress has another crack dealer.
True, and they need to be gotten rid of also.
Yes, I mean on top of. You think a $1 billion deposit means they can loan out $1.9 billion?
Of course, they do not really pay out loans from the money they receive as deposits.
But of course they do. Every loan is fully funded.
If they did this, no additional money would be created.
OMG! Whoever wrote that should have been fired.
You deposit $1000 in twenties in the bank, your statement says $1000.
I borrow $900, I now have $900 in my hand. The money supply is $1900 and my loan was paid out of the money they received as deposits.
All bondholders would be repaid with U.S. Notes.
You want to increase the money supply another 600%? LOL!