Central Banks Don't Create Money.

[Pksimon2007]

Banks can lend reserves TO EACH OTHER.

I can borrow from a bank with no deposits.
My bank can borrow excess reserves from another bank to make sure the loan check does not bounce.
And that's not me borrowing reserves? LOL!

- Or a bank can buy reserves from the Fed. For that matter, they can BUY them from another bank.

So no, it's not you borrowing reserves. You borrowing does not require the bank to do anything in particular with reserves. It's up to the bank, and has nothing to do with you.

Your original contention was that banks loaned deposits. Then you decided they didn't lend deposits, but loaned reserves.

You've admitted you were wrong, and are now trying to find some twist of words that will make you seem not to have been so wrong as you were.

Yes, it's funny how they need to buy or borrow reserves because of my loan.
The loan that you claim is not reserves.

Your original contention was that banks loaned deposits.

That is usually the cheapest way to get the excess, lendable reserves.

- Except we agree now that, based on accounting, it's impossible for banks to lend deposits, right?

 

[Pksimon2007]

Borrowers never, ever borrow reserves, and banks never, ever lend them to borrowers.

Shit, you're stupid.
I go into my bank today to take out a personal loan for $10,000.
They open a deposit account for me. I say , "Thanks, I'd like that in $50s and $20s" Have I borrowed some of the bank's reserves?

- No.

Cash isn't reserves.

Cash can be used to offset a reserve requirement, but reserves are deposits created by the Fed in favor of banks in their reserve accounts at the Fed.

Cash isn't reserves.

Vault cash is part of reserves.

- No, it isn't. And don't find some dumbass quote. Listen carefully. Reserves are deposit balances with the central bank.

Vault cash can be used to satisfy a reserve requirement IN LIEU OF having reserves on deposit.

 

[Pksimon2007]

Banks can lend reserves TO EACH OTHER.

I can borrow from a bank with no deposits.
My bank can borrow excess reserves from another bank to make sure the loan check does not bounce.
And that's not me borrowing reserves? LOL!

- Or a bank can buy reserves from the Fed. For that matter, they can BUY them from another bank.

So no, it's not you borrowing reserves. You borrowing does not require the bank to do anything in particular with reserves. It's up to the bank, and has nothing to do with you.

Your original contention was that banks loaned deposits. Then you decided they didn't lend deposits, but loaned reserves.

You've admitted you were wrong, and are now trying to find some twist of words that will make you seem not to have been so wrong as you were.

Yes, it's funny how they need to buy or borrow reserves because of my loan.
The loan that you claim is not reserves.

Your original contention was that banks loaned deposits.

That is usually the cheapest way to get the excess, lendable reserves.

- And you have already agreed that reserves are not "lendable", so you can stop beating that dead horse, too.

 

[Toddsterpatriot]

Banks can lend reserves TO EACH OTHER.

I can borrow from a bank with no deposits.
My bank can borrow excess reserves from another bank to make sure the loan check does not bounce.
And that's not me borrowing reserves? LOL!

- Or a bank can buy reserves from the Fed. For that matter, they can BUY them from another bank.

So no, it's not you borrowing reserves. You borrowing does not require the bank to do anything in particular with reserves. It's up to the bank, and has nothing to do with you.

Your original contention was that banks loaned deposits. Then you decided they didn't lend deposits, but loaned reserves.

You've admitted you were wrong, and are now trying to find some twist of words that will make you seem not to have been so wrong as you were.

Yes, it's funny how they need to buy or borrow reserves because of my loan.
The loan that you claim is not reserves.

Your original contention was that banks loaned deposits.

That is usually the cheapest way to get the excess, lendable reserves.

- Except we agree now that, based on accounting, it's impossible for banks to lend deposits, right?

A check deposit of $1000 adds reserves to a bank's account at the Fed.
A loan from that bank reduces that bank's account at the Fed.
Looks like a bank can lend deposits. Right.

 

[Toddsterpatriot]

Banks can lend reserves TO EACH OTHER.

I can borrow from a bank with no deposits.
My bank can borrow excess reserves from another bank to make sure the loan check does not bounce.
And that's not me borrowing reserves? LOL!

- Or a bank can buy reserves from the Fed. For that matter, they can BUY them from another bank.

So no, it's not you borrowing reserves. You borrowing does not require the bank to do anything in particular with reserves. It's up to the bank, and has nothing to do with you.

Your original contention was that banks loaned deposits. Then you decided they didn't lend deposits, but loaned reserves.

You've admitted you were wrong, and are now trying to find some twist of words that will make you seem not to have been so wrong as you were.

Yes, it's funny how they need to buy or borrow reserves because of my loan.
The loan that you claim is not reserves.

Your original contention was that banks loaned deposits.

That is usually the cheapest way to get the excess, lendable reserves.

- And you have already agreed that reserves are not "lendable", so you can stop beating that dead horse, too.

Reserves have been lendable, ever since I pointed it out in post #8.

Central Banks Don't Create Money.

 

[Toddsterpatriot]

Borrowers never, ever borrow reserves, and banks never, ever lend them to borrowers.

Shit, you're stupid.
I go into my bank today to take out a personal loan for $10,000.
They open a deposit account for me. I say , "Thanks, I'd like that in $50s and $20s" Have I borrowed some of the bank's reserves?

- No.

Cash isn't reserves.

Cash can be used to offset a reserve requirement, but reserves are deposits created by the Fed in favor of banks in their reserve accounts at the Fed.

Cash isn't reserves.

Vault cash is part of reserves.

- No, it isn't. And don't find some dumbass quote. Listen carefully. Reserves are deposit balances with the central bank.

Vault cash can be used to satisfy a reserve requirement IN LIEU OF having reserves on deposit.

Reserves are deposit balances with the central bank.

And vault cash.

Vault cash can be used to satisfy a reserve requirement

Yes, because vault cash is part of reserves. LOL!

A reporting institution may satisfy its reserve requirements by holding vault cash, by holding a reserve balance with its Federal Reserve Bank, or by electing to be a respondent and passing its required reserve balance through a correspondent institution.

Page 18

http://www.federalreserve.gov/reportforms/forms/FR_2900cu20120930_i.pdf

Are you done making me laugh yet?

 

[EdwardBaiamonte]

They create settlement funds or, as they are called some places, reserves.

more accurately, central banks control the creation of money to prevent inflation and deflation so the economy can grow steady based on accurate price signals from the market place.

 

[Pksimon2007]

Borrowers never, ever borrow reserves, and banks never, ever lend them to borrowers.

Shit, you're stupid.
I go into my bank today to take out a personal loan for $10,000.
They open a deposit account for me. I say , "Thanks, I'd like that in $50s and $20s" Have I borrowed some of the bank's reserves?

- No.

Cash isn't reserves.

Cash can be used to offset a reserve requirement, but reserves are deposits created by the Fed in favor of banks in their reserve accounts at the Fed.

Cash isn't reserves.

Vault cash is part of reserves.

- No, it isn't. And don't find some dumbass quote. Listen carefully. Reserves are deposit balances with the central bank.

Vault cash can be used to satisfy a reserve requirement IN LIEU OF having reserves on deposit.

Reserves are deposit balances with the central bank.

And vault cash.

Vault cash can be used to satisfy a reserve requirement

Yes, because vault cash is part of reserves. LOL!

A reporting institution may satisfy its reserve requirements by holding vault cash, by holding a reserve balance with its Federal Reserve Bank, or by electing to be a respondent and passing its required reserve balance through a correspondent institution.

Page 18

http://www.federalreserve.gov/reportforms/forms/FR_2900cu20120930_i.pdf

Are you done making me laugh yet?

- Notice the wording, Todd. To satisfy the requirement you may hold vault cash *or* reserves.

Need I parse that further?

 

[Pksimon2007]

Borrowers never, ever borrow reserves, and banks never, ever lend them to borrowers.

Shit, you're stupid.
I go into my bank today to take out a personal loan for $10,000.
They open a deposit account for me. I say , "Thanks, I'd like that in $50s and $20s" Have I borrowed some of the bank's reserves?

- No.

Cash isn't reserves.

Cash can be used to offset a reserve requirement, but reserves are deposits created by the Fed in favor of banks in their reserve accounts at the Fed.

Cash isn't reserves.

Vault cash is part of reserves.

- No, it isn't. And don't find some dumbass quote. Listen carefully. Reserves are deposit balances with the central bank.

Vault cash can be used to satisfy a reserve requirement IN LIEU OF having reserves on deposit.

Reserves are deposit balances with the central bank.

And vault cash.

Vault cash can be used to satisfy a reserve requirement

Yes, because vault cash is part of reserves. LOL!

A reporting institution may satisfy its reserve requirements by holding vault cash, by holding a reserve balance with its Federal Reserve Bank, or by electing to be a respondent and passing its required reserve balance through a correspondent institution.

Page 18

http://www.federalreserve.gov/reportforms/forms/FR_2900cu20120930_i.pdf

Are you done making me laugh yet?

- You are going to continue to be wrong about everything here.

Sometimes it's best to recognize that an argument isn't ideological, and you don't need to argue with it.

 

[Pksimon2007]

They create settlement funds or, as they are called some places, reserves.

more accurately, central banks control the creation of money to prevent inflation and deflation so the economy can grow steady based on accurate price signals from the market place.

- <sigh>

And I thought you were paying attention.

The Fed cannot control the supply of money. They try to control the price of loans of reserves, which theoretically influences the entire term structure, which they hope will influence inflation.

Rookies.

 

[EdwardBaiamonte]

The Fed cannot control the supply of money..

so why doesn't it increase or decease by a factor of 10 overnight? Do the Girl Scouts control it??


See why we are positive that liberalism is based in pure ignorance??

 

[Pksimon2007]

The Fed cannot control the supply of money..

so why doesn't it increase or decease by a factor of 10 overnight? Do the Girl Scouts control it??


See why we are positive that liberalism is based in pure ignorance??

- Let me get this straight.

Your theory is that any economic process (including the creation of money, but perhaps also simply the pricing of goods in the market) will, if not controlled by a government entity, fluctuate so wildly that it could change by a factor of ten overnight?

So without government controlling the supply or price of Skittles, I would pay $1.99 a bag one day, and $19.99 the next?

That's an interesting theory.

Have you run it past your Tea Party club?

 

[Toddsterpatriot]

Borrowers never, ever borrow reserves, and banks never, ever lend them to borrowers.

Shit, you're stupid.
I go into my bank today to take out a personal loan for $10,000.
They open a deposit account for me. I say , "Thanks, I'd like that in $50s and $20s" Have I borrowed some of the bank's reserves?

- No.

Cash isn't reserves.

Cash can be used to offset a reserve requirement, but reserves are deposits created by the Fed in favor of banks in their reserve accounts at the Fed.

Cash isn't reserves.

Vault cash is part of reserves.

- No, it isn't. And don't find some dumbass quote. Listen carefully. Reserves are deposit balances with the central bank.

Vault cash can be used to satisfy a reserve requirement IN LIEU OF having reserves on deposit.

Reserves are deposit balances with the central bank.

And vault cash.

Vault cash can be used to satisfy a reserve requirement

Yes, because vault cash is part of reserves. LOL!

A reporting institution may satisfy its reserve requirements by holding vault cash, by holding a reserve balance with its Federal Reserve Bank, or by electing to be a respondent and passing its required reserve balance through a correspondent institution.

Page 18

http://www.federalreserve.gov/reportforms/forms/FR_2900cu20120930_i.pdf

Are you done making me laugh yet?

- Notice the wording, Todd. To satisfy the requirement you may hold vault cash *or* reserves.

Need I parse that further?

To satisfy the requirement you may hold vault cash *or* reserves.

To satisfy the reserve requirement, you may hold vault cash or a reserve balance at the Fed. Sounds like vault cash is counted as reserves.

 

[Toddsterpatriot]

Borrowers never, ever borrow reserves, and banks never, ever lend them to borrowers.

Shit, you're stupid.
I go into my bank today to take out a personal loan for $10,000.
They open a deposit account for me. I say , "Thanks, I'd like that in $50s and $20s" Have I borrowed some of the bank's reserves?

- No.

Cash isn't reserves.

Cash can be used to offset a reserve requirement, but reserves are deposits created by the Fed in favor of banks in their reserve accounts at the Fed.

Cash isn't reserves.

Vault cash is part of reserves.

- No, it isn't. And don't find some dumbass quote. Listen carefully. Reserves are deposit balances with the central bank.

Vault cash can be used to satisfy a reserve requirement IN LIEU OF having reserves on deposit.

Reserves are deposit balances with the central bank.

And vault cash.

Vault cash can be used to satisfy a reserve requirement

Yes, because vault cash is part of reserves. LOL!

A reporting institution may satisfy its reserve requirements by holding vault cash, by holding a reserve balance with its Federal Reserve Bank, or by electing to be a respondent and passing its required reserve balance through a correspondent institution.

Page 18

http://www.federalreserve.gov/reportforms/forms/FR_2900cu20120930_i.pdf

Are you done making me laugh yet?

- You are going to continue to be wrong about everything here.

Sometimes it's best to recognize that an argument isn't ideological, and you don't need to argue with it.

Sometimes it's best to recognize that an argument isn't ideological

I never said your errors were ideological.
I'm just showing you're wrong.

 

[Pksimon2007]

- No.

Cash isn't reserves.

Cash can be used to offset a reserve requirement, but reserves are deposits created by the Fed in favor of banks in their reserve accounts at the Fed.

Cash isn't reserves.

Vault cash is part of reserves.

- No, it isn't. And don't find some dumbass quote. Listen carefully. Reserves are deposit balances with the central bank.

Vault cash can be used to satisfy a reserve requirement IN LIEU OF having reserves on deposit.

Reserves are deposit balances with the central bank.

And vault cash.

Vault cash can be used to satisfy a reserve requirement

Yes, because vault cash is part of reserves. LOL!

A reporting institution may satisfy its reserve requirements by holding vault cash, by holding a reserve balance with its Federal Reserve Bank, or by electing to be a respondent and passing its required reserve balance through a correspondent institution.

Page 18

http://www.federalreserve.gov/reportforms/forms/FR_2900cu20120930_i.pdf

Are you done making me laugh yet?

- Notice the wording, Todd. To satisfy the requirement you may hold vault cash *or* reserves.

Need I parse that further?

To satisfy the requirement you may hold vault cash *or* reserves.

To satisfy the reserve requirement, you may hold vault cash or a reserve balance at the Fed. Sounds like vault cash is counted as reserves.

- How does it sound like that?

You can satisfy the requirement with vault cash *or* reserves makes it extremely clear that they are not the same thing.

 

[Pksimon2007]

- No.

Cash isn't reserves.

Cash can be used to offset a reserve requirement, but reserves are deposits created by the Fed in favor of banks in their reserve accounts at the Fed.

Cash isn't reserves.

Vault cash is part of reserves.

- No, it isn't. And don't find some dumbass quote. Listen carefully. Reserves are deposit balances with the central bank.

Vault cash can be used to satisfy a reserve requirement IN LIEU OF having reserves on deposit.

Reserves are deposit balances with the central bank.

And vault cash.

Vault cash can be used to satisfy a reserve requirement

Yes, because vault cash is part of reserves. LOL!

A reporting institution may satisfy its reserve requirements by holding vault cash, by holding a reserve balance with its Federal Reserve Bank, or by electing to be a respondent and passing its required reserve balance through a correspondent institution.

Page 18

http://www.federalreserve.gov/reportforms/forms/FR_2900cu20120930_i.pdf

Are you done making me laugh yet?

- You are going to continue to be wrong about everything here.

Sometimes it's best to recognize that an argument isn't ideological, and you don't need to argue with it.

Sometimes it's best to recognize that an argument isn't ideological

I never said your errors were ideological.
I'm just showing you're wrong.

- Oh you are, are you?

Your understanding of this seems a little tangled.

So far you've claimed that a bank can turn an asset into a liability, which takes two credit entries - you keep denying that, but can't name any debit entry a bank could possibly make which would fit your little scenario.

You initially claimed that banks loaned deposits, but abandoned that when you were shown conclusively to be wrong.

You then decided that banks lend reserves, but now admit they can't, and are now falling back on two positions:

1) Some sort of mumbling musings that even though banks can't lend reserves, that the fact that reserves exist in the financial universe somehow means banks are lending them and

2) This new, twisted argument in which a federal regulation says that a reserve requirement can be met either with reserves or with something else means that the something else is actually reserves, which can most charitably be described as an abuse of both logic and the English language.

So how are you "proving me wrong", exactly? Is that like claiming that the bruises the other guy gave you prove you won the fight?

 

[Toddsterpatriot]

Cash isn't reserves.

Vault cash is part of reserves.

- No, it isn't. And don't find some dumbass quote. Listen carefully. Reserves are deposit balances with the central bank.

Vault cash can be used to satisfy a reserve requirement IN LIEU OF having reserves on deposit.

Reserves are deposit balances with the central bank.

And vault cash.

Vault cash can be used to satisfy a reserve requirement

Yes, because vault cash is part of reserves. LOL!

A reporting institution may satisfy its reserve requirements by holding vault cash, by holding a reserve balance with its Federal Reserve Bank, or by electing to be a respondent and passing its required reserve balance through a correspondent institution.

Page 18

http://www.federalreserve.gov/reportforms/forms/FR_2900cu20120930_i.pdf

Are you done making me laugh yet?

- Notice the wording, Todd. To satisfy the requirement you may hold vault cash *or* reserves.

Need I parse that further?

To satisfy the requirement you may hold vault cash *or* reserves.

To satisfy the reserve requirement, you may hold vault cash or a reserve balance at the Fed. Sounds like vault cash is counted as reserves.

- How does it sound like that?

You can satisfy the requirement with vault cash *or* reserves makes it extremely clear that they are not the same thing.

Vault cash is part of reserves.
- No, it isn't.

A reporting institution may satisfy its reserve requirements by holding vault cash, by holding a reserve balance with its Federal Reserve Bank, or by electing to be a respondent and passing its required reserve balance through a correspondent institution.
The Fed says you can satisfy reserve requirements with vault cash or a reserve balance at a Federal Reserve Bank.

So which is the more accurate claim?
Mine----Vault cash is part of reserves.
Your's----No, it isn't

 

[Toddsterpatriot]

Cash isn't reserves.

Vault cash is part of reserves.

- No, it isn't. And don't find some dumbass quote. Listen carefully. Reserves are deposit balances with the central bank.

Vault cash can be used to satisfy a reserve requirement IN LIEU OF having reserves on deposit.

Reserves are deposit balances with the central bank.

And vault cash.

Vault cash can be used to satisfy a reserve requirement

Yes, because vault cash is part of reserves. LOL!

A reporting institution may satisfy its reserve requirements by holding vault cash, by holding a reserve balance with its Federal Reserve Bank, or by electing to be a respondent and passing its required reserve balance through a correspondent institution.

Page 18

http://www.federalreserve.gov/reportforms/forms/FR_2900cu20120930_i.pdf

Are you done making me laugh yet?

- You are going to continue to be wrong about everything here.

Sometimes it's best to recognize that an argument isn't ideological, and you don't need to argue with it.

Sometimes it's best to recognize that an argument isn't ideological

I never said your errors were ideological.
I'm just showing you're wrong.

- Oh you are, are you?

Your understanding of this seems a little tangled.

So far you've claimed that a bank can turn an asset into a liability, which takes two credit entries - you keep denying that, but can't name any debit entry a bank could possibly make which would fit your little scenario.

You initially claimed that banks loaned deposits, but abandoned that when you were shown conclusively to be wrong.

You then decided that banks lend reserves, but now admit they can't, and are now falling back on two positions:

1) Some sort of mumbling musings that even though banks can't lend reserves, that the fact that reserves exist in the financial universe somehow means banks are lending them and

2) This new, twisted argument in which a federal regulation says that a reserve requirement can be met either with reserves or with something else means that the something else is actually reserves, which can most charitably be described as an abuse of both logic and the English language.

So how are you "proving me wrong", exactly? Is that like claiming that the bruises the other guy gave you prove you won the fight?

So far you've claimed that a bank can turn an asset into a liability,

No I didn't.

You initially claimed that banks loaned deposits, but abandoned that when you were shown conclusively to be wrong.

Banks can loan deposits, less the reserve requirement.
Never abandoned my position.

You then decided that banks lend reserves, but now admit they can't

Banks can lend reserves. Never abandoned my position.

This new, twisted argument in which a federal regulation says that a reserve requirement can be met either with reserves or with something else means that the something else is actually reserves

Code of Federal Regulations
Title 12 - Banks and Banking
Volume: 2Date: 2012-01-01Original Date: 2012-01-01Title: Section 204.5 - Maintenance of required reserves.Context: Title 12 - Banks and Banking. CHAPTER II - FEDERAL RESERVE SYSTEM. SUBCHAPTER A - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. PART 204 - RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS (REGULATION D).
§ 204.5 Maintenance of required reserves. (a)(1) A depository institution, a U.S. branch or agency of a foreign bank, and an Edge or Agreement corporation shall maintain required reserves in the form of vault cash and, if vault cash does not fully satisfy the institution's required reserves, in the form of a balance maintained (i) Directly with the Federal Reserve Bank in the Federal Reserve District in which the institution is located, or (ii) With a pass-through correspondent in accordance with § 204.5(d).

Maintenance of required reserves.

I'm torn. What is more credible, the actual Federal Regulation, or the clown who said.......

But the two kinds of money are not exchanged. Bank deposits never become central bank reserves or vice versa.

LOL!

 

[Pksimon2007]

- No, it isn't. And don't find some dumbass quote. Listen carefully. Reserves are deposit balances with the central bank.

Vault cash can be used to satisfy a reserve requirement IN LIEU OF having reserves on deposit.

Reserves are deposit balances with the central bank.

And vault cash.

Vault cash can be used to satisfy a reserve requirement

Yes, because vault cash is part of reserves. LOL!

A reporting institution may satisfy its reserve requirements by holding vault cash, by holding a reserve balance with its Federal Reserve Bank, or by electing to be a respondent and passing its required reserve balance through a correspondent institution.

Page 18

http://www.federalreserve.gov/reportforms/forms/FR_2900cu20120930_i.pdf

Are you done making me laugh yet?

- Notice the wording, Todd. To satisfy the requirement you may hold vault cash *or* reserves.

Need I parse that further?

To satisfy the requirement you may hold vault cash *or* reserves.

To satisfy the reserve requirement, you may hold vault cash or a reserve balance at the Fed. Sounds like vault cash is counted as reserves.

- How does it sound like that?

You can satisfy the requirement with vault cash *or* reserves makes it extremely clear that they are not the same thing.

Vault cash is part of reserves.
- No, it isn't.

A reporting institution may satisfy its reserve requirements by holding vault cash, by holding a reserve balance with its Federal Reserve Bank, or by electing to be a respondent and passing its required reserve balance through a correspondent institution.
The Fed says you can satisfy reserve requirements with vault cash or a reserve balance at a Federal Reserve Bank.

So which is the more accurate claim?
Mine----Vault cash is part of reserves.
Your's----No, it isn't

- I'm guessing that English is a second language for you, amiright?

 

[Pksimon2007]

- No, it isn't. And don't find some dumbass quote. Listen carefully. Reserves are deposit balances with the central bank.

Vault cash can be used to satisfy a reserve requirement IN LIEU OF having reserves on deposit.

Reserves are deposit balances with the central bank.

And vault cash.

Vault cash can be used to satisfy a reserve requirement

Yes, because vault cash is part of reserves. LOL!

A reporting institution may satisfy its reserve requirements by holding vault cash, by holding a reserve balance with its Federal Reserve Bank, or by electing to be a respondent and passing its required reserve balance through a correspondent institution.

Page 18

http://www.federalreserve.gov/reportforms/forms/FR_2900cu20120930_i.pdf

Are you done making me laugh yet?

- You are going to continue to be wrong about everything here.

Sometimes it's best to recognize that an argument isn't ideological, and you don't need to argue with it.

Sometimes it's best to recognize that an argument isn't ideological

I never said your errors were ideological.
I'm just showing you're wrong.

- Oh you are, are you?

Your understanding of this seems a little tangled.

So far you've claimed that a bank can turn an asset into a liability, which takes two credit entries - you keep denying that, but can't name any debit entry a bank could possibly make which would fit your little scenario.

You initially claimed that banks loaned deposits, but abandoned that when you were shown conclusively to be wrong.

You then decided that banks lend reserves, but now admit they can't, and are now falling back on two positions:

1) Some sort of mumbling musings that even though banks can't lend reserves, that the fact that reserves exist in the financial universe somehow means banks are lending them and

2) This new, twisted argument in which a federal regulation says that a reserve requirement can be met either with reserves or with something else means that the something else is actually reserves, which can most charitably be described as an abuse of both logic and the English language.

So how are you "proving me wrong", exactly? Is that like claiming that the bruises the other guy gave you prove you won the fight?

So far you've claimed that a bank can turn an asset into a liability,

No I didn't.

You initially claimed that banks loaned deposits, but abandoned that when you were shown conclusively to be wrong.

Banks can loan deposits, less the reserve requirement.
Never abandoned my position.

You then decided that banks lend reserves, but now admit they can't

Banks can lend reserves. Never abandoned my position.

This new, twisted argument in which a federal regulation says that a reserve requirement can be met either with reserves or with something else means that the something else is actually reserves

Code of Federal Regulations
Title 12 - Banks and Banking
Volume: 2Date: 2012-01-01Original Date: 2012-01-01Title: Section 204.5 - Maintenance of required reserves.Context: Title 12 - Banks and Banking. CHAPTER II - FEDERAL RESERVE SYSTEM. SUBCHAPTER A - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. PART 204 - RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS (REGULATION D).
§ 204.5 Maintenance of required reserves. (a)(1) A depository institution, a U.S. branch or agency of a foreign bank, and an Edge or Agreement corporation shall maintain required reserves in the form of vault cash and, if vault cash does not fully satisfy the institution's required reserves, in the form of a balance maintained (i) Directly with the Federal Reserve Bank in the Federal Reserve District in which the institution is located, or (ii) With a pass-through correspondent in accordance with § 204.5(d).

Maintenance of required reserves.

I'm torn. What is more credible, the actual Federal Regulation, or the clown who said.......

But the two kinds of money are not exchanged. Bank deposits never become central bank reserves or vice versa.

LOL!

- Vault cash satisfies the reserve requirement. It is NOT the same thing as balances at the central bank, which ARE reserves. That's what they are called.

- So now you have admitted that everything I said in my OP was correct, and you're thinking that this argument over terms promises a big victory for you?

That's the basic problem with libertarians: they get bogged down in minutia, and have no ability to see the forest for the trees.

Now - go look back at my OP, and tell me which elements of it you have shown to be wrong.

The answer is: none.