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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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To: JOAT
Please try to not pretend you don't understand fractional reserve banking.

I'm not pretending anything. Bank reserves are a fraction of deposits. That means they loan less than their deposits. You think they loan more? Show me how.

The money supply grows every time a loan is made.

Show me where I disagreed with this.

A bank with $1000 and a 10% reserve requirement can loan $900. When they do, $900 has been created.

Thanks for the link, it shows deposits are greater than loans. LOL!

12 posted on 05/19/2009 3:17:46 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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