WatertheTree
Senior Member
- Sep 9, 2011
- 1,804
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- #81
repeated lending by multiple banks increases the original deposit by nine times
Yes. Yet each bank lent less than deposits.
Name Amount deposit Amount lent Reserve
John $100,000.00 $90,000.00 $10,000.00
Mary $90,000.00 $81,000.00 $9,000.00
George $81,000.00 $72,900.00 $8,100.00
Mike $72,900.00 $65,610.00 $7,290.00
Sue $65,610.00 $59,049.00 $6,561.00
Tom $59,049.00 $53,144.00 $5,904.90
Dick $53,144.00 $47,829.69 $5,314.40
Harry $47,829.69 $43,046.72 $4,782.97
Bess $43,046.72
Totals $512,579.41 $56,593.27
John 's deposit was money he made working in the economy. Everyone else obtained a loan and deposited the money in a different bank. As you see here a total of $512,579.41 was loan out. All created out of thin air. Each person in the example has their deposit available and an equal amount of debt. This is how bubbles are created. You don't see any thing wrong with this?
Excellent example.
9 deposits, totalling $612,579.41.
8 loans, totalling $512,579.41
9 reserve "deposits", totalling $100,000
You see every loan is less than the deposit that precedes it.
As you see here a total of $512,579.41 was loan out. All created out of thin air.
Yes, that was the loan total. Not created out of thin air, created from deposits.
Each person in the example has their deposit available and an equal amount of debt.
Yes. Except for John. Simple accounting.
You don't see any thing wrong with this?
I see nothing wrong with people depositing or borrowing money.
Do you see anything wrong with it?
I see something wrong with them creating a half million dollars so easily, even if your just to plain stupid to.