Central Banks Don't Create Money.

[Pksimon2007]

- How about we let the Bank of England explain this to you:

"Money creation in practice differs from some popular misconceptions — banks do not act simply
as intermediaries, lending out deposits that savers place with them, and nor do they ‘multiply up’
central bank money to create new loans and deposits."

"
The reality of how money is created today differs from the description found in some economics textbooks:
• Rather than banks receiving deposits when households save and then lending them out, bank lending creates
deposits."

The Fed works in the same way as the BoE, and banking in England works the same way as it does here - and around the world.

Quarterly Bulletin 2014 Q1 Bank of England

- How about we let the Bank of England explain this to you:

It's more fun correcting your errors.

- Oddly, the Bank of England and the Fed have agreed with me on everything so far, and disagreed with you.

Even the article from the Fed WHICH YOU POSTED agreed with me.

So are the Fed and the Bank of England wrong about how they work?

Even the article from the Fed WHICH YOU POSTED agreed with me.

This thread is way too long.
Please show me which portion of a Fed article agreed with which post of yours and disagreed with which post of mine.

So are the Fed and the Bank of England wrong about how they work?

No, just you.

- I cited it in the post above, lol - remember where your source said that the Fed had to provide collateral for all FRNs in circulation?

What is collateral?

Security for a loan.

I also posted from the Fed where they explicitly SAID they borrowed them from Treasury and turned over all of their profits as interest payments.

Dang. Do you even bother to read, or is the cackle and guffaw machine on autopilot?

I also posted the Bank of England article explaining that banks do not lend deposits, but CREATE deposits when they lend.

This is not rocket science, but you have to read what is posted to understand how stuff works.

I also posted the Bank of England article explaining that banks do not lend deposits, but CREATE deposits when they lend.

It's clear you don't understand what that means. Allow me.
Let's say a customer named PK goes to the bank to borrow money for economics classes.
He's going to borrow $10,000. When he signs the loan documents, the bank creates a deposit account in the name of PK. This account now contains $10,000. With me so far?
The bank doesn't need any deposits at this point to fund this loan, PK's deposit account covers PK's loan.
Now PK writes a check out of his deposit account for $10,000, to pay for tuition.
At this point the bank needs to drum up enough deposits to cover the loan, plus any reserve requirement, if any.
They don't have to collect these deposits on their own, they could borrow excess reserves from another bank that had "excess deposits". In that case, the 2nd banks deposits were loaned out.
In either case, without deposits, that $10,000 loan check will bounce.

Let me know if you're still confused about the role deposits play in the lending process.

 

[Pksimon2007]

//At this point the bank needs to drum up enough deposits to cover the loan, plus any reserve requirement//

- You're never going to allow yourself to learn this, Todd.

Okay, so let's say that the bank has "drummed up enough deposits", which means they've come up with a bunch of debts they owe people.

Now what? How do they turn what they owe people into cash?

I'm all ears.

After you've fumbled around a while trying to tap dance about this, I'll explain the very simple way this works, which I already explained.


The bank doesn't have to drum up their debts, Todd.

 

[Pksimon2007]

How can you focus on "effects" if you don't understand how the system works? If you can't distinguish effects produced by "the system" from other effects, your "solutions" are more than likely not going to solve the problems you see.

It's rare to see people defending the virtues of ignorance.

So, you're saying that unless someone understands the subtle difference between creating deposits and loaning deposits that you can't discuss the the effects of this? OK, if you insist. The same goes for the Federal Reserve and how it acquires U.S. Treasury Bonds. It's completely absurd to say you can't discuss how this affects the economy without all of the details.

That is no different than saying you can't discuss the features and functionality of a Microsoft Windows platform without all of the details about the code.

You're pumping your own ego and that's it. Few are going to bother with this thread because it's unnecessarily verbose. Its not about defending the virtues of ignorance, it's about having a discussion that most people can understand that helps them see how all of this has an impact on their lives, versus an Economics course on banking.

But if you insist that everyone MUST understand this at the level you claim to understand the effects, then have at it. At least your ego will be happy.

- You probably can't discuss it, because you'll come to completely wrong conclusions like "IT'S INFLATIONARY!!!!!!!", because you don't understand that reserves don't "chase goods", so they can't be inflationary.

 

[Toddsterpatriot]

//At this point the bank needs to drum up enough deposits to cover the loan, plus any reserve requirement//

- You're never going to allow yourself to learn this, Todd.

Okay, so let's say that the bank has "drummed up enough deposits", which means they've come up with a bunch of debts they owe people.

Now what? How do they turn what they owe people into cash?

I'm all ears.

After you've fumbled around a while trying to tap dance about this, I'll explain the very simple way this works, which I already explained.


The bank doesn't have to drum up their debts, Todd.

Okay, so let's say that the bank has "drummed up enough deposits", which means they've come up with a bunch of debts they owe people.

Now what? How do they turn what they owe people into cash?

The "debt they owe people" is their deposit accounts.
They don't need to "turn those into cash", because the depositors, when they opened those deposit accounts, handed the bank cash or checks drawn on accounts at other banks.

Your question makes me think you've gone backwards since yesterday.

I'll explain the very simple way this works,

Excellent, I always enjoy a good laugh.

 

[TC_Triple3]

- You probably can't discuss it, because you'll come to completely wrong conclusions like "IT'S INFLATIONARY!!!!!!!", because you don't understand that reserves don't "chase goods", so they can't be inflationary.

You really need to get over yourself.

I never mentioned "reserves" and I'm well aware that reserves aren't inflationary but money creation damn sure is, and historically banks are the primary source. I also see that you completely ignored my comment that the Fractional Reserve Banking System is, for all intents and purposes, in a perpetual state of insolvency. There is little chance that you or I will agree on much of anything as I am an Austrian and you are a Keynesian, but have fun with this little thread of yours which drones on and on without much of a purpose.

 

[Pksimon2007]

//At this point the bank needs to drum up enough deposits to cover the loan, plus any reserve requirement//

- You're never going to allow yourself to learn this, Todd.

Okay, so let's say that the bank has "drummed up enough deposits", which means they've come up with a bunch of debts they owe people.

Now what? How do they turn what they owe people into cash?

I'm all ears.

After you've fumbled around a while trying to tap dance about this, I'll explain the very simple way this works, which I already explained.


The bank doesn't have to drum up their debts, Todd.

Okay, so let's say that the bank has "drummed up enough deposits", which means they've come up with a bunch of debts they owe people.

Now what? How do they turn what they owe people into cash?

The "debt they owe people" is their deposit accounts.
They don't need to "turn those into cash", because the depositors, when they opened those deposit accounts, handed the bank cash or checks drawn on accounts at other banks.

Your question makes me think you've gone backwards since yesterday.

I'll explain the very simple way this works,

Excellent, I always enjoy a good laugh.

- So your argument is that when I deposit my paycheck, the bank is going to take my paycheck and lend it to someone?

When is the last time you got a loan and the bank handed you someone else's paycheck?

That's the "asset" you keep saying banks are going to lend that's what I deposited.

The bank has no way to lend that to anyone.

They have to CREATE a deposit from nothing.

 

[Pksimon2007]

- You probably can't discuss it, because you'll come to completely wrong conclusions like "IT'S INFLATIONARY!!!!!!!", because you don't understand that reserves don't "chase goods", so they can't be inflationary.

You really need to get over yourself.

I never mentioned "reserves" and I'm well aware that reserves aren't inflationary but money creation damn sure is, and historically banks are the primary source. I also see that you completely ignored my comment that the Fractional Reserve Banking System is, for all intents and purposes, in a perpetual state of insolvency. There is little chance that you or I will agree on much of anything as I am an Austrian and you are a Keynesian, but have fun with this little thread of yours which drones on and on without much of a purpose.

- Is there an argument in there anywhere?

 

[Toddsterpatriot]

//At this point the bank needs to drum up enough deposits to cover the loan, plus any reserve requirement//

- You're never going to allow yourself to learn this, Todd.

Okay, so let's say that the bank has "drummed up enough deposits", which means they've come up with a bunch of debts they owe people.

Now what? How do they turn what they owe people into cash?

I'm all ears.

After you've fumbled around a while trying to tap dance about this, I'll explain the very simple way this works, which I already explained.


The bank doesn't have to drum up their debts, Todd.

Okay, so let's say that the bank has "drummed up enough deposits", which means they've come up with a bunch of debts they owe people.

Now what? How do they turn what they owe people into cash?

The "debt they owe people" is their deposit accounts.
They don't need to "turn those into cash", because the depositors, when they opened those deposit accounts, handed the bank cash or checks drawn on accounts at other banks.

Your question makes me think you've gone backwards since yesterday.

I'll explain the very simple way this works,

Excellent, I always enjoy a good laugh.

- So your argument is that when I deposit my paycheck, the bank is going to take my paycheck and lend it to someone?

When is the last time you got a loan and the bank handed you someone else's paycheck?

That's the "asset" you keep saying banks are going to lend that's what I deposited.

The bank has no way to lend that to anyone.

They have to CREATE a deposit from nothing.

So your argument is that when I deposit my paycheck, the bank is going to take my paycheck and lend it to someone?

No, my argument is the dollars I was paid can be lent to someone.

When is the last time you got a loan and the bank handed you someone else's paycheck?

I agree, your strawman has never happened to me before.

They have to CREATE a deposit from nothing.

I explained before that they can create offsetting assets and liabilities, simultaneously.
You probably didn't understand it, because it's accounting.

I'll explain the very simple way this works,

I'm waiting.

 

[EdwardBaiamonte]

They have to CREATE a deposit from nothing.

it not from nothing dear its from Fed monetary policy and it reflects the real goods and services in the economy. If they could merely create it at will, they would create billions for themselves and retire.

Do you understand?

 

[Pksimon2007]

//At this point the bank needs to drum up enough deposits to cover the loan, plus any reserve requirement//

- You're never going to allow yourself to learn this, Todd.

Okay, so let's say that the bank has "drummed up enough deposits", which means they've come up with a bunch of debts they owe people.

Now what? How do they turn what they owe people into cash?

I'm all ears.

After you've fumbled around a while trying to tap dance about this, I'll explain the very simple way this works, which I already explained.


The bank doesn't have to drum up their debts, Todd.

Okay, so let's say that the bank has "drummed up enough deposits", which means they've come up with a bunch of debts they owe people.

Now what? How do they turn what they owe people into cash?

The "debt they owe people" is their deposit accounts.
They don't need to "turn those into cash", because the depositors, when they opened those deposit accounts, handed the bank cash or checks drawn on accounts at other banks.

Your question makes me think you've gone backwards since yesterday.

I'll explain the very simple way this works,

Excellent, I always enjoy a good laugh.

- So your argument is that when I deposit my paycheck, the bank is going to take my paycheck and lend it to someone?

When is the last time you got a loan and the bank handed you someone else's paycheck?

That's the "asset" you keep saying banks are going to lend that's what I deposited.

The bank has no way to lend that to anyone.

They have to CREATE a deposit from nothing.

So your argument is that when I deposit my paycheck, the bank is going to take my paycheck and lend it to someone?

No, my argument is the dollars I was paid can be lent to someone.

When is the last time you got a loan and the bank handed you someone else's paycheck?

I agree, your strawman has never happened to me before.

They have to CREATE a deposit from nothing.

I explained before that they can create offsetting assets and liabilities, simultaneously.
You probably didn't understand it, because it's accounting.

I'll explain the very simple way this works,

I'm waiting.

- The dollars you were paid? What dollars, Todd? You were given a check.

The bank can't lend the check.

The bank gets reserves for the check.

The bank can't lend reserves.

So what dollars magically appear that they can lend, Todd?

Todd, you need to start getting really specific.

The bottom line is you are absolutely clueless as to how this works.

You're right. This is accounting, something I have spent most of my life making a living at, and about which your understanding is notably hazy.

I would suggest that this discussion is over as far as I'm concerned.

If you have genuine questions, I'll answer them, but you've come to a gunfight with bare hands as far as any argument about the topic is concerned.

 

[Pksimon2007]

They have to CREATE a deposit from nothing.

it not from nothing dear its from Fed monetary policy and it reflects the real goods and services in the economy. If they could merely create it at will, they would create billions for themselves and retire.

Do you understand?

"it's not from nothing....it's from the Fed's monetary policy and it reflects the real goods and services in the economy..."

- I don't know whether to laugh or weep for humanity when I read something like this.

Yeah, QE was all about the goods and services produced by the real economy.

Please.

 

[EdwardBaiamonte]

Yeah, QE was all about the goods and services produced by the real economy.

Please.

yes dear it was about protecting the real economy from the financial economy, i.e., not letting deflation spread throughout the economy. Do you understand now?

See why we say liberalism is based in pure ignorance?

 

[Toddsterpatriot]

So your argument is that when I deposit my paycheck, the bank is going to take my paycheck and lend it to someone?

No, my argument is the dollars I was paid can be lent to someone.

When is the last time you got a loan and the bank handed you someone else's paycheck?

I agree, your strawman has never happened to me before.

They have to CREATE a deposit from nothing.

I explained before that they can create offsetting assets and liabilities, simultaneously.
You probably didn't understand it, because it's accounting.

I'll explain the very simple way this works,

I'm waiting.

- The dollars you were paid? What dollars, Todd? You were given a check.

The bank can't lend the check.

The bank gets reserves for the check.

The bank can't lend reserves.

So what dollars magically appear that they can lend, Todd?

Todd, you need to start getting really specific.

The bottom line is you are absolutely clueless as to how this works.

You're right. This is accounting, something I have spent most of my life making a living at, and about which your understanding is notably hazy.

I would suggest that this discussion is over as far as I'm concerned.

If you have genuine questions, I'll answer them, but you've come to a gunfight with bare hands as far as any argument about the topic is concerned.

- The dollars you were paid? What dollars, Todd?

Yes, I was paid dollars. How are you paid? Euros? Yen?

You were given a check.

Yes. A check denominated in dollars.

The bank can't lend the check.

Who said they could? Where?

The bank gets reserves for the check.

Great, you got one right.

The bank can't lend reserves.

I guess one in a row is the best you can do.
Banks can absolutely lend reserves. They do it every day.

So what dollars magically appear that they can lend, Todd?

No dollars magically appeared.

This is accounting, something I have spent most of my life making a living at,

I hope your confusion about banking hasn't cost any of your clients any money.

I would suggest that this discussion is over as far as I'm concerned.

Yeah, I wouldn't blame you for running away.
After I pointed out all your errors and mocked you relentlessly.
I'm surprised you lasted this long. Before you go.....

I'll explain the very simple way this works,

I'm still waiting.

 

[Pksimon2007]

So your argument is that when I deposit my paycheck, the bank is going to take my paycheck and lend it to someone?

No, my argument is the dollars I was paid can be lent to someone.

When is the last time you got a loan and the bank handed you someone else's paycheck?

I agree, your strawman has never happened to me before.

They have to CREATE a deposit from nothing.

I explained before that they can create offsetting assets and liabilities, simultaneously.
You probably didn't understand it, because it's accounting.

I'll explain the very simple way this works,

I'm waiting.

- The dollars you were paid? What dollars, Todd? You were given a check.

The bank can't lend the check.

The bank gets reserves for the check.

The bank can't lend reserves.

So what dollars magically appear that they can lend, Todd?

Todd, you need to start getting really specific.

The bottom line is you are absolutely clueless as to how this works.

You're right. This is accounting, something I have spent most of my life making a living at, and about which your understanding is notably hazy.

I would suggest that this discussion is over as far as I'm concerned.

If you have genuine questions, I'll answer them, but you've come to a gunfight with bare hands as far as any argument about the topic is concerned.

- The dollars you were paid? What dollars, Todd?

Yes, I was paid dollars. How are you paid? Euros? Yen?

You were given a check.

Yes. A check denominated in dollars.

The bank can't lend the check.

Who said they could? Where?

The bank gets reserves for the check.

Great, you got one right.

The bank can't lend reserves.

I guess one in a row is the best you can do.
Banks can absolutely lend reserves. They do it every day.

So what dollars magically appear that they can lend, Todd?

No dollars magically appeared.

This is accounting, something I have spent most of my life making a living at,

I hope your confusion about banking hasn't cost any of your clients any money.

I would suggest that this discussion is over as far as I'm concerned.

Yeah, I wouldn't blame you for running away.
After I pointed out all your errors and mocked you relentlessly.
I'm surprised you lasted this long. Before you go.....

I'll explain the very simple way this works,

I'm still waiting.

- You may talk to somebody about that ego. Or maybe it's a reading comprehension problem. Or both.

Banks don't - cannot - lend out reserves. Reserves are a balance sheet account on the books of the Fed.

They can't be loaned.

https://www.kreditopferhilfe.net/docs/S_and_P__Repeat_After_Me_8_14_13.pdf

 

[jasonnfree]

So your argument is that when I deposit my paycheck, the bank is going to take my paycheck and lend it to someone?

No, my argument is the dollars I was paid can be lent to someone.

When is the last time you got a loan and the bank handed you someone else's paycheck?

I agree, your strawman has never happened to me before.

They have to CREATE a deposit from nothing.

I explained before that they can create offsetting assets and liabilities, simultaneously.
You probably didn't understand it, because it's accounting.

I'll explain the very simple way this works,

I'm waiting.

- The dollars you were paid? What dollars, Todd? You were given a check.

The bank can't lend the check.

The bank gets reserves for the check.

The bank can't lend reserves.

So what dollars magically appear that they can lend, Todd?

Todd, you need to start getting really specific.

The bottom line is you are absolutely clueless as to how this works.

You're right. This is accounting, something I have spent most of my life making a living at, and about which your understanding is notably hazy.

I would suggest that this discussion is over as far as I'm concerned.

If you have genuine questions, I'll answer them, but you've come to a gunfight with bare hands as far as any argument about the topic is concerned.

- The dollars you were paid? What dollars, Todd?

Yes, I was paid dollars. How are you paid? Euros? Yen?

You were given a check.

Yes. A check denominated in dollars.

The bank can't lend the check.

Who said they could? Where?

The bank gets reserves for the check.

Great, you got one right.

The bank can't lend reserves.

I guess one in a row is the best you can do.
Banks can absolutely lend reserves. They do it every day.

So what dollars magically appear that they can lend, Todd?

No dollars magically appeared.

This is accounting, something I have spent most of my life making a living at,

I hope your confusion about banking hasn't cost any of your clients any money.

I would suggest that this discussion is over as far as I'm concerned.

Yeah, I wouldn't blame you for running away.
After I pointed out all your errors and mocked you relentlessly.
I'm surprised you lasted this long. Before you go.....

I'll explain the very simple way this works,

I'm still waiting.

- You may talk to somebody about that ego. Or maybe it's a reading comprehension problem. Or both.

Banks don't - cannot - lend out reserves. Reserves are a balance sheet account on the books of the Fed.

They can't be loaned.

https://www.kreditopferhilfe.net/docs/S_and_P__Repeat_After_Me_8_14_13.pdf

Thanks for the link and don't let the trolls get you down.

 

[Toddsterpatriot]

So your argument is that when I deposit my paycheck, the bank is going to take my paycheck and lend it to someone?

No, my argument is the dollars I was paid can be lent to someone.

When is the last time you got a loan and the bank handed you someone else's paycheck?

I agree, your strawman has never happened to me before.

They have to CREATE a deposit from nothing.

I explained before that they can create offsetting assets and liabilities, simultaneously.
You probably didn't understand it, because it's accounting.

I'll explain the very simple way this works,

I'm waiting.

- The dollars you were paid? What dollars, Todd? You were given a check.

The bank can't lend the check.

The bank gets reserves for the check.

The bank can't lend reserves.

So what dollars magically appear that they can lend, Todd?

Todd, you need to start getting really specific.

The bottom line is you are absolutely clueless as to how this works.

You're right. This is accounting, something I have spent most of my life making a living at, and about which your understanding is notably hazy.

I would suggest that this discussion is over as far as I'm concerned.

If you have genuine questions, I'll answer them, but you've come to a gunfight with bare hands as far as any argument about the topic is concerned.

- The dollars you were paid? What dollars, Todd?

Yes, I was paid dollars. How are you paid? Euros? Yen?

You were given a check.

Yes. A check denominated in dollars.

The bank can't lend the check.

Who said they could? Where?

The bank gets reserves for the check.

Great, you got one right.

The bank can't lend reserves.

I guess one in a row is the best you can do.
Banks can absolutely lend reserves. They do it every day.

So what dollars magically appear that they can lend, Todd?

No dollars magically appeared.

This is accounting, something I have spent most of my life making a living at,

I hope your confusion about banking hasn't cost any of your clients any money.

I would suggest that this discussion is over as far as I'm concerned.

Yeah, I wouldn't blame you for running away.
After I pointed out all your errors and mocked you relentlessly.
I'm surprised you lasted this long. Before you go.....

I'll explain the very simple way this works,

I'm still waiting.

- You may talk to somebody about that ego. Or maybe it's a reading comprehension problem. Or both.

Banks don't - cannot - lend out reserves. Reserves are a balance sheet account on the books of the Fed.

They can't be loaned.

https://www.kreditopferhilfe.net/docs/S_and_P__Repeat_After_Me_8_14_13.pdf

Banks don't - cannot - lend out reserves.

That's funny.

They can't be loaned.

I do ever so wish you'd tell me what they do loan.
I can always use a good laugh on a Monday.

 

[Pksimon2007]

So your argument is that when I deposit my paycheck, the bank is going to take my paycheck and lend it to someone?

No, my argument is the dollars I was paid can be lent to someone.

When is the last time you got a loan and the bank handed you someone else's paycheck?

I agree, your strawman has never happened to me before.

They have to CREATE a deposit from nothing.

I explained before that they can create offsetting assets and liabilities, simultaneously.
You probably didn't understand it, because it's accounting.

I'll explain the very simple way this works,

I'm waiting.

- The dollars you were paid? What dollars, Todd? You were given a check.

The bank can't lend the check.

The bank gets reserves for the check.

The bank can't lend reserves.

So what dollars magically appear that they can lend, Todd?

Todd, you need to start getting really specific.

The bottom line is you are absolutely clueless as to how this works.

You're right. This is accounting, something I have spent most of my life making a living at, and about which your understanding is notably hazy.

I would suggest that this discussion is over as far as I'm concerned.

If you have genuine questions, I'll answer them, but you've come to a gunfight with bare hands as far as any argument about the topic is concerned.

- The dollars you were paid? What dollars, Todd?

Yes, I was paid dollars. How are you paid? Euros? Yen?

You were given a check.

Yes. A check denominated in dollars.

The bank can't lend the check.

Who said they could? Where?

The bank gets reserves for the check.

Great, you got one right.

The bank can't lend reserves.

I guess one in a row is the best you can do.
Banks can absolutely lend reserves. They do it every day.

So what dollars magically appear that they can lend, Todd?

No dollars magically appeared.

This is accounting, something I have spent most of my life making a living at,

I hope your confusion about banking hasn't cost any of your clients any money.

I would suggest that this discussion is over as far as I'm concerned.

Yeah, I wouldn't blame you for running away.
After I pointed out all your errors and mocked you relentlessly.
I'm surprised you lasted this long. Before you go.....

I'll explain the very simple way this works,

I'm still waiting.

- You may talk to somebody about that ego. Or maybe it's a reading comprehension problem. Or both.

Banks don't - cannot - lend out reserves. Reserves are a balance sheet account on the books of the Fed.

They can't be loaned.

https://www.kreditopferhilfe.net/docs/S_and_P__Repeat_After_Me_8_14_13.pdf

Banks don't - cannot - lend out reserves.

That's funny.

They can't be loaned.

I do ever so wish you'd tell me what they do loan.
I can always use a good laugh on a Monday.

- I already did. They create bank deposits for borrowers.

Bank deposits are money to a depositor.

 

[Toddsterpatriot]

So your argument is that when I deposit my paycheck, the bank is going to take my paycheck and lend it to someone?

No, my argument is the dollars I was paid can be lent to someone.

When is the last time you got a loan and the bank handed you someone else's paycheck?

I agree, your strawman has never happened to me before.

They have to CREATE a deposit from nothing.

I explained before that they can create offsetting assets and liabilities, simultaneously.
You probably didn't understand it, because it's accounting.

I'll explain the very simple way this works,

I'm waiting.

- The dollars you were paid? What dollars, Todd? You were given a check.

The bank can't lend the check.

The bank gets reserves for the check.

The bank can't lend reserves.

So what dollars magically appear that they can lend, Todd?

Todd, you need to start getting really specific.

The bottom line is you are absolutely clueless as to how this works.

You're right. This is accounting, something I have spent most of my life making a living at, and about which your understanding is notably hazy.

I would suggest that this discussion is over as far as I'm concerned.

If you have genuine questions, I'll answer them, but you've come to a gunfight with bare hands as far as any argument about the topic is concerned.

- The dollars you were paid? What dollars, Todd?

Yes, I was paid dollars. How are you paid? Euros? Yen?

You were given a check.

Yes. A check denominated in dollars.

The bank can't lend the check.

Who said they could? Where?

The bank gets reserves for the check.

Great, you got one right.

The bank can't lend reserves.

I guess one in a row is the best you can do.
Banks can absolutely lend reserves. They do it every day.

So what dollars magically appear that they can lend, Todd?

No dollars magically appeared.

This is accounting, something I have spent most of my life making a living at,

I hope your confusion about banking hasn't cost any of your clients any money.

I would suggest that this discussion is over as far as I'm concerned.

Yeah, I wouldn't blame you for running away.
After I pointed out all your errors and mocked you relentlessly.
I'm surprised you lasted this long. Before you go.....

I'll explain the very simple way this works,

I'm still waiting.

- You may talk to somebody about that ego. Or maybe it's a reading comprehension problem. Or both.

Banks don't - cannot - lend out reserves. Reserves are a balance sheet account on the books of the Fed.

They can't be loaned.

https://www.kreditopferhilfe.net/docs/S_and_P__Repeat_After_Me_8_14_13.pdf

Banks don't - cannot - lend out reserves.

That's funny.

They can't be loaned.

I do ever so wish you'd tell me what they do loan.
I can always use a good laugh on a Monday.

- I already did. They create bank deposits for borrowers.

Bank deposits are money to a depositor.

- I already did. They create bank deposits for borrowers.

And when the borrower pulls out those funds, what does the borrower get?

 

[Pksimon2007]

- The dollars you were paid? What dollars, Todd? You were given a check.

The bank can't lend the check.

The bank gets reserves for the check.

The bank can't lend reserves.

So what dollars magically appear that they can lend, Todd?

Todd, you need to start getting really specific.

The bottom line is you are absolutely clueless as to how this works.

You're right. This is accounting, something I have spent most of my life making a living at, and about which your understanding is notably hazy.

I would suggest that this discussion is over as far as I'm concerned.

If you have genuine questions, I'll answer them, but you've come to a gunfight with bare hands as far as any argument about the topic is concerned.

- The dollars you were paid? What dollars, Todd?

Yes, I was paid dollars. How are you paid? Euros? Yen?

You were given a check.

Yes. A check denominated in dollars.

The bank can't lend the check.

Who said they could? Where?

The bank gets reserves for the check.

Great, you got one right.

The bank can't lend reserves.

I guess one in a row is the best you can do.
Banks can absolutely lend reserves. They do it every day.

So what dollars magically appear that they can lend, Todd?

No dollars magically appeared.

This is accounting, something I have spent most of my life making a living at,

I hope your confusion about banking hasn't cost any of your clients any money.

I would suggest that this discussion is over as far as I'm concerned.

Yeah, I wouldn't blame you for running away.
After I pointed out all your errors and mocked you relentlessly.
I'm surprised you lasted this long. Before you go.....

I'll explain the very simple way this works,

I'm still waiting.

- You may talk to somebody about that ego. Or maybe it's a reading comprehension problem. Or both.

Banks don't - cannot - lend out reserves. Reserves are a balance sheet account on the books of the Fed.

They can't be loaned.

https://www.kreditopferhilfe.net/docs/S_and_P__Repeat_After_Me_8_14_13.pdf

Banks don't - cannot - lend out reserves.

That's funny.

They can't be loaned.

I do ever so wish you'd tell me what they do loan.
I can always use a good laugh on a Monday.

- I already did. They create bank deposits for borrowers.

Bank deposits are money to a depositor.

- I already did. They create bank deposits for borrowers.

And when the borrower pulls out those funds, what does the borrower get?

- A check written to somebody else, which results in a transfer of those reserves (you know, the ones you said the bank loaned to somebody else) to another bank.

You really need to educate yourself on the system.

People don't get mortgages and withdraw the money in cash. derp


Let's run through your little scenario in a less sneering, more logical way.

Let's pretend banks actually could lend out reserves, just because that's your wrongheaded belief.

You deposit a check, the Fed awards the bank's reserve account with reserves in the amount of your check.

The bank makes a loan to someone else, "lending them the reserves" the bank got when it accepted your check.

You go to withdraw your money.

Where is it? According to you, the bank has nothing to pay you with.

According to me, they do.

According to REALITY, they do.

 

[Toddsterpatriot]

- The dollars you were paid? What dollars, Todd?

Yes, I was paid dollars. How are you paid? Euros? Yen?

You were given a check.

Yes. A check denominated in dollars.

The bank can't lend the check.

Who said they could? Where?

The bank gets reserves for the check.

Great, you got one right.

The bank can't lend reserves.

I guess one in a row is the best you can do.
Banks can absolutely lend reserves. They do it every day.

So what dollars magically appear that they can lend, Todd?

No dollars magically appeared.

This is accounting, something I have spent most of my life making a living at,

I hope your confusion about banking hasn't cost any of your clients any money.

I would suggest that this discussion is over as far as I'm concerned.

Yeah, I wouldn't blame you for running away.
After I pointed out all your errors and mocked you relentlessly.
I'm surprised you lasted this long. Before you go.....

I'll explain the very simple way this works,

I'm still waiting.

- You may talk to somebody about that ego. Or maybe it's a reading comprehension problem. Or both.

Banks don't - cannot - lend out reserves. Reserves are a balance sheet account on the books of the Fed.

They can't be loaned.

https://www.kreditopferhilfe.net/docs/S_and_P__Repeat_After_Me_8_14_13.pdf

Banks don't - cannot - lend out reserves.

That's funny.

They can't be loaned.

I do ever so wish you'd tell me what they do loan.
I can always use a good laugh on a Monday.

- I already did. They create bank deposits for borrowers.

Bank deposits are money to a depositor.

- I already did. They create bank deposits for borrowers.

And when the borrower pulls out those funds, what does the borrower get?

- A check written to somebody else, which results in a transfer of those reserves (you know, the ones you said the bank loaned to somebody else) to another bank.

You really need to educate yourself on the system.

People don't get mortgages and withdraw the money in cash. derp


Let's run through your little scenario in a less sneering, more logical way.

Let's pretend banks actually could lend out reserves, just because that's your wrongheaded belief.

You deposit a check, the Fed awards the bank's reserve account with reserves in the amount of your check.

The bank makes a loan to someone else, "lending them the reserves" the bank got when it accepted your check.

You go to withdraw your money.

Where is it? According to you, the bank has nothing to pay you with.

According to me, they do.

According to REALITY, they do.

- A check written to somebody else, which results in a transfer of those reserves (you know, the ones you said the bank loaned to somebody else) to another bank.

Holy shit!
Someone borrowed money and the loan reduced the bank's reserves.
Why didn't you just admit your error the first time I laughed at your claim?

People don't get mortgages and withdraw the money in cash. derp

Umm, when the seller deposits the buyer's check, the loan money is withdrawn.
Derp indeed.

You deposit a check, the Fed awards the bank's reserve account with reserves in the amount of your check.
The bank makes a loan to someone else, "lending them the reserves" the bank got when it accepted your check.

Excellent example!

You go to withdraw your money.
Where is it? According to you, the bank has nothing to pay you with.

That is correct. If I deposited $1000 and the bank lends out $900, assuming a 10% reserve requirement, and I come back to take out any of my money, assuming no other deposits, the bank has nothing to pay me with.

According to me, they do.

By all means, explain further. I see you intend to make me laugh some more.