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To: JOAT
A bank with deposits of $1000 and a 10% reserve requirement can loan $900.

Not sure what you're multiplying by ten. $900 is less than $1000.

Please feel free to show any error in my math.

10 posted on 05/19/2009 3:01:44 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot
Please try to not pretend you don't understand fractional reserve banking.

Reading your posts over the years proves you do.

Clearly the money is loaned repeatedly to 'create' money that did not exist in the original $1000 dollars.

You love to play coy, I know, so here is a Wiki link for others who care to look: Toddster mash

The multiplier can vary of course, but the result is the same.

The money supply grows every time a loan is made.

All backed by Helicopter Ben and his crew. Oh yeah, and the "full faith and credit" promise.

11 posted on 05/19/2009 3:11:00 PM PDT by JOAT
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