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To: Drago
With a 0% reserve requirement and a bank run the bank goes under and no actual bank money is lost??

If a bank loans you money and you default, there is a loss.

49 posted on 12/23/2023 5:13:51 PM PST by Toddsterpatriot (TANSTAAFL)
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To: Toddsterpatriot

Sure, true if the bank remains solvent then it is their loss...but if there is a bank run and the bank goes down then it become s depositor loss after FDIC limits (unless you are a depositor at Silicon Valley Bank then the Feds step in to cover the losses of over $250K with “funny money”). So maybe it a definition of “loss” problem for Griffin...he is thinking “further upstream” at The Fed (which is currently running in the red).

https://crsreports.congress.gov/product/pdf/IN/IN12081

https://www.smithanglin.com/blog/how-does-the-federal-reserve-create-money/

I guess I need a good flow chart of U.S. currency creation & destruction (and debt monetization). “Monetary Policy for Dummies”?? ;-)


51 posted on 12/23/2023 6:52:29 PM PST by Drago
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