[Toddsterpatriot]

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!

[Fingolfin]

You think a $1 billion deposit means they can loan out $1.9 billion?

No, a $1 billion deposit means they can loan out $900 billion. $1.9 billion is the total money supply after the loan.

But of course they do. Every loan is fully funded. OMG! Whoever wrote that should have been fired.

It is straight out of the Fed's own documents - the Federal Reserve Bank of Chicago to be precise. As far as being fired, I am sure whoever released Modern Money Mechanics is no longer with us, if you know what I mean...

The money supply is $1900 and my loan was paid out of the money they received as deposits.

Where did the $900 come from then? It sure wasn't my deposits, as they are still at the bank. You just proved my point.