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!
Where does the 'new' 900 dollars go, hmmn?
More than likely back to the bank.
Perhaps not the original bank that created the 900 dollars, but nevertheless, back into the banking system, to be loaned out again, albeit fractionally.
With 90 dollars in reserve, the new bank creates 810 'new' dollars and the each of those new units devalues the currency a little more. and so on and so on, until the original 1000 loses steam.
But not to worry, the private Fed will print up another Trillion or so to 'jump start' the economy and fractionally lend it out again.
C'mon Toddster, stop with the semantic game. We all know how the Ponzi scheme works.