How is money created?

[Dovahkiin]

The loan created Billy's deposit.

The loan created Billy's deposit.

Yes, but Billy's deposit won't clear Billy's check.

So where did Jen's deposit go?

What makes you think his deposit won't clear his check?

What makes you think it will?

This isn't going anywhere. We both know that loans create deposits and banks never need to worry about getting reserves. So, what makes you think a bank will drain money from jen's deposit so billy can take from his? I may be wrong on this, but that doesn't seem right. Please, provide some evidence showing this occurs.

We both know that loans create deposits and banks never need to worry about getting reserves.

The bank needs to get reserves to clear Billy's check?

So, what makes you think a bank will drain money from jen's deposit so billy can take from his?

New bank, $20,000 deposit from Jen. Where does the money go?

If a bank doesn't have reserves, it's in some deep shit..
And yes, I'm pretty sure a bank needs reserves to clear billy's check.

 

[Dovahkiin]

The loan created Billy's deposit.

The loan created Billy's deposit.

Yes, but Billy's deposit won't clear Billy's check.

So where did Jen's deposit go?

What makes you think his deposit won't clear his check?

What makes you think it will?

This isn't going anywhere. We both know that loans create deposits and banks never need to worry about getting reserves. So, what makes you think a bank will drain money from jen's deposit so billy can take from his? I may be wrong on this, but that doesn't seem right. Please, provide some evidence showing this occurs.

We both know that loans create deposits and banks never need to worry about getting reserves.

The bank needs to get reserves to clear Billy's check?

So, what makes you think a bank will drain money from jen's deposit so billy can take from his?

New bank, $20,000 deposit from Jen. Where does the money go?

And I should note I'm by no means an expert on this, so feel free to explain why I'm wrong, instead of posing more questions.

 

[Toddsterpatriot]

The loan created Billy's deposit.

Yes, but Billy's deposit won't clear Billy's check.

So where did Jen's deposit go?

What makes you think his deposit won't clear his check?

What makes you think it will?

This isn't going anywhere. We both know that loans create deposits and banks never need to worry about getting reserves. So, what makes you think a bank will drain money from jen's deposit so billy can take from his? I may be wrong on this, but that doesn't seem right. Please, provide some evidence showing this occurs.

We both know that loans create deposits and banks never need to worry about getting reserves.

The bank needs to get reserves to clear Billy's check?

So, what makes you think a bank will drain money from jen's deposit so billy can take from his?

New bank, $20,000 deposit from Jen. Where does the money go?

If a bank doesn't have reserves, it's in some deep shit..
And yes, I'm pretty sure a bank needs reserves to clear billy's check.

If a bank doesn't have reserves, it's in some deep shit..

We agree.

And yes, I'm pretty sure a bank needs reserves to clear billy's check.

We agree again. Since Billy's loan doesn't create its own reserves, Jen's deposit would come in handy.

 

[Toddsterpatriot]

The loan created Billy's deposit.

Yes, but Billy's deposit won't clear Billy's check.

So where did Jen's deposit go?

What makes you think his deposit won't clear his check?

What makes you think it will?

This isn't going anywhere. We both know that loans create deposits and banks never need to worry about getting reserves. So, what makes you think a bank will drain money from jen's deposit so billy can take from his? I may be wrong on this, but that doesn't seem right. Please, provide some evidence showing this occurs.

We both know that loans create deposits and banks never need to worry about getting reserves.

The bank needs to get reserves to clear Billy's check?

So, what makes you think a bank will drain money from jen's deposit so billy can take from his?

New bank, $20,000 deposit from Jen. Where does the money go?

And I should note I'm by no means an expert on this, so feel free to explain why I'm wrong, instead of posing more questions.

feel free to explain why I'm wrong, instead of posing more questions.

If you don't know where a deposit goes, that explains many of your errors.

 

[Dovahkiin]

What makes you think his deposit won't clear his check?

What makes you think it will?

This isn't going anywhere. We both know that loans create deposits and banks never need to worry about getting reserves. So, what makes you think a bank will drain money from jen's deposit so billy can take from his? I may be wrong on this, but that doesn't seem right. Please, provide some evidence showing this occurs.

We both know that loans create deposits and banks never need to worry about getting reserves.

The bank needs to get reserves to clear Billy's check?

So, what makes you think a bank will drain money from jen's deposit so billy can take from his?

New bank, $20,000 deposit from Jen. Where does the money go?

If a bank doesn't have reserves, it's in some deep shit..
And yes, I'm pretty sure a bank needs reserves to clear billy's check.

If a bank doesn't have reserves, it's in some deep shit..

We agree.

And yes, I'm pretty sure a bank needs reserves to clear billy's check.

We agree again. Since Billy's loan doesn't create its own reserves, Jen's deposit would come in handy.

But at the end of the day, the bank will always get the reserves. They don't loan based on looking at the reserves they currently have. I still don't see evidence that a bank literally takes from Jen's deposit.

 

[Dovahkiin]

What makes you think his deposit won't clear his check?

What makes you think it will?

This isn't going anywhere. We both know that loans create deposits and banks never need to worry about getting reserves. So, what makes you think a bank will drain money from jen's deposit so billy can take from his? I may be wrong on this, but that doesn't seem right. Please, provide some evidence showing this occurs.

We both know that loans create deposits and banks never need to worry about getting reserves.

The bank needs to get reserves to clear Billy's check?

So, what makes you think a bank will drain money from jen's deposit so billy can take from his?

New bank, $20,000 deposit from Jen. Where does the money go?

And I should note I'm by no means an expert on this, so feel free to explain why I'm wrong, instead of posing more questions.

feel free to explain why I'm wrong, instead of posing more questions.

If you don't know where a deposit goes, that explains many of your errors.

What makes you think that?

 

[Toddsterpatriot]

What makes you think it will?

This isn't going anywhere. We both know that loans create deposits and banks never need to worry about getting reserves. So, what makes you think a bank will drain money from jen's deposit so billy can take from his? I may be wrong on this, but that doesn't seem right. Please, provide some evidence showing this occurs.

We both know that loans create deposits and banks never need to worry about getting reserves.

The bank needs to get reserves to clear Billy's check?

So, what makes you think a bank will drain money from jen's deposit so billy can take from his?

New bank, $20,000 deposit from Jen. Where does the money go?

If a bank doesn't have reserves, it's in some deep shit..
And yes, I'm pretty sure a bank needs reserves to clear billy's check.

If a bank doesn't have reserves, it's in some deep shit..

We agree.

And yes, I'm pretty sure a bank needs reserves to clear billy's check.

We agree again. Since Billy's loan doesn't create its own reserves, Jen's deposit would come in handy.

But at the end of the day, the bank will always get the reserves. They don't loan based on looking at the reserves they currently have. I still don't see evidence that a bank literally takes from Jen's deposit.

But at the end of the day, the bank will always get the reserves

Where does a bank get these reserves you think are a given?

They don't loan based on looking at the reserves they currently have.

Okay. So what?

I still don't see evidence that a bank literally takes from Jen's deposit.

I still don't see evidence you understand what happens to Jen's deposit.

 

[Toddsterpatriot]

What makes you think it will?

This isn't going anywhere. We both know that loans create deposits and banks never need to worry about getting reserves. So, what makes you think a bank will drain money from jen's deposit so billy can take from his? I may be wrong on this, but that doesn't seem right. Please, provide some evidence showing this occurs.

We both know that loans create deposits and banks never need to worry about getting reserves.

The bank needs to get reserves to clear Billy's check?

So, what makes you think a bank will drain money from jen's deposit so billy can take from his?

New bank, $20,000 deposit from Jen. Where does the money go?

And I should note I'm by no means an expert on this, so feel free to explain why I'm wrong, instead of posing more questions.

feel free to explain why I'm wrong, instead of posing more questions.

If you don't know where a deposit goes, that explains many of your errors.

What makes you think that?

I think you don't know because you've failed to answer.

 

[Dovahkiin]

This isn't going anywhere. We both know that loans create deposits and banks never need to worry about getting reserves. So, what makes you think a bank will drain money from jen's deposit so billy can take from his? I may be wrong on this, but that doesn't seem right. Please, provide some evidence showing this occurs.

We both know that loans create deposits and banks never need to worry about getting reserves.

The bank needs to get reserves to clear Billy's check?

So, what makes you think a bank will drain money from jen's deposit so billy can take from his?

New bank, $20,000 deposit from Jen. Where does the money go?

And I should note I'm by no means an expert on this, so feel free to explain why I'm wrong, instead of posing more questions.

feel free to explain why I'm wrong, instead of posing more questions.

If you don't know where a deposit goes, that explains many of your errors.

What makes you think that?

I think you don't know because you've failed to answer.

Enlighten me. I'm pretty sure the bank simply goes on a computer..

 

[Dovahkiin]

This isn't going anywhere. We both know that loans create deposits and banks never need to worry about getting reserves. So, what makes you think a bank will drain money from jen's deposit so billy can take from his? I may be wrong on this, but that doesn't seem right. Please, provide some evidence showing this occurs.

We both know that loans create deposits and banks never need to worry about getting reserves.

The bank needs to get reserves to clear Billy's check?

So, what makes you think a bank will drain money from jen's deposit so billy can take from his?

New bank, $20,000 deposit from Jen. Where does the money go?

If a bank doesn't have reserves, it's in some deep shit..
And yes, I'm pretty sure a bank needs reserves to clear billy's check.

If a bank doesn't have reserves, it's in some deep shit..

We agree.

And yes, I'm pretty sure a bank needs reserves to clear billy's check.

We agree again. Since Billy's loan doesn't create its own reserves, Jen's deposit would come in handy.

But at the end of the day, the bank will always get the reserves. They don't loan based on looking at the reserves they currently have. I still don't see evidence that a bank literally takes from Jen's deposit.

But at the end of the day, the bank will always get the reserves

Where does a bank get these reserves you think are a given?

They don't loan based on looking at the reserves they currently have.

Okay. So what?

I still don't see evidence that a bank literally takes from Jen's deposit.

I still don't see evidence you understand what happens to Jen's deposit.

We've already discussed where the bank gets the reserves. The Fed.

 

[Toddsterpatriot]

We both know that loans create deposits and banks never need to worry about getting reserves.

The bank needs to get reserves to clear Billy's check?

So, what makes you think a bank will drain money from jen's deposit so billy can take from his?

New bank, $20,000 deposit from Jen. Where does the money go?

And I should note I'm by no means an expert on this, so feel free to explain why I'm wrong, instead of posing more questions.

feel free to explain why I'm wrong, instead of posing more questions.

If you don't know where a deposit goes, that explains many of your errors.

What makes you think that?

I think you don't know because you've failed to answer.

Enlighten me. I'm pretty sure the bank simply goes on a computer..

Jen deposits $20,000 for a CD and the bank "goes on a computer"?

 

[Toddsterpatriot]

We both know that loans create deposits and banks never need to worry about getting reserves.

The bank needs to get reserves to clear Billy's check?

So, what makes you think a bank will drain money from jen's deposit so billy can take from his?

New bank, $20,000 deposit from Jen. Where does the money go?

If a bank doesn't have reserves, it's in some deep shit..
And yes, I'm pretty sure a bank needs reserves to clear billy's check.

If a bank doesn't have reserves, it's in some deep shit..

We agree.

And yes, I'm pretty sure a bank needs reserves to clear billy's check.

We agree again. Since Billy's loan doesn't create its own reserves, Jen's deposit would come in handy.

But at the end of the day, the bank will always get the reserves. They don't loan based on looking at the reserves they currently have. I still don't see evidence that a bank literally takes from Jen's deposit.

But at the end of the day, the bank will always get the reserves

Where does a bank get these reserves you think are a given?

They don't loan based on looking at the reserves they currently have.

Okay. So what?

I still don't see evidence that a bank literally takes from Jen's deposit.

I still don't see evidence you understand what happens to Jen's deposit.

We've already discussed where the bank gets the reserves. The Fed.

The bank loans $10,000 to Billy and asks the Fed for $10,000 to clear Billy's check?

 

[Dovahkiin]

And I should note I'm by no means an expert on this, so feel free to explain why I'm wrong, instead of posing more questions.

feel free to explain why I'm wrong, instead of posing more questions.

If you don't know where a deposit goes, that explains many of your errors.

What makes you think that?

I think you don't know because you've failed to answer.

Enlighten me. I'm pretty sure the bank simply goes on a computer..

Jen deposits $20,000 for a CD and the bank "goes on a computer"?

I will admit I'm not an expert on this as I've said. However, in this example, Jen is depositing. What does this have to do with loans and deposits?

 

[Dovahkiin]

If a bank doesn't have reserves, it's in some deep shit..
And yes, I'm pretty sure a bank needs reserves to clear billy's check.

If a bank doesn't have reserves, it's in some deep shit..

We agree.

And yes, I'm pretty sure a bank needs reserves to clear billy's check.

We agree again. Since Billy's loan doesn't create its own reserves, Jen's deposit would come in handy.

But at the end of the day, the bank will always get the reserves. They don't loan based on looking at the reserves they currently have. I still don't see evidence that a bank literally takes from Jen's deposit.

But at the end of the day, the bank will always get the reserves

Where does a bank get these reserves you think are a given?

They don't loan based on looking at the reserves they currently have.

Okay. So what?

I still don't see evidence that a bank literally takes from Jen's deposit.

I still don't see evidence you understand what happens to Jen's deposit.

We've already discussed where the bank gets the reserves. The Fed.

The bank loans $10,000 to Billy and asks the Fed for $10,000 to clear Billy's check?

Where does a bank get these reserves you think are a given?

The fed.
What I'm referring to.
Enlighten me on the clearing process, since you keep asking questions and refusing to explain why the check won't clear.

 

[Vigilante]

According to Iran, when talking to Castro in Cuba, they told him exactly how they can get U.S. dollars.... No interest charged

 

[Toddsterpatriot]

feel free to explain why I'm wrong, instead of posing more questions.

If you don't know where a deposit goes, that explains many of your errors.

What makes you think that?

I think you don't know because you've failed to answer.

Enlighten me. I'm pretty sure the bank simply goes on a computer..

Jen deposits $20,000 for a CD and the bank "goes on a computer"?

I will admit I'm not an expert on this as I've said. However, in this example, Jen is depositing. What does this have to do with loans and deposits?

However, in this example, Jen is depositing. What does this have to do with loans and deposits?

I'll give you 3 ways Jen can make her deposit, you try to tell me where her money goes.

She walks in with $20,000 in cash and opens a 2 year CD. Where does her deposit go?
She walks in with a $20,000 check and opens a 2 year CD. Where does her deposit go?
She walks in and sets up an incoming wire for $20,000 and opens a 2 year CD. Where does her deposit go?

 

[Toddsterpatriot]

If a bank doesn't have reserves, it's in some deep shit..

We agree.

And yes, I'm pretty sure a bank needs reserves to clear billy's check.

We agree again. Since Billy's loan doesn't create its own reserves, Jen's deposit would come in handy.

But at the end of the day, the bank will always get the reserves. They don't loan based on looking at the reserves they currently have. I still don't see evidence that a bank literally takes from Jen's deposit.

But at the end of the day, the bank will always get the reserves

Where does a bank get these reserves you think are a given?

They don't loan based on looking at the reserves they currently have.

Okay. So what?

I still don't see evidence that a bank literally takes from Jen's deposit.

I still don't see evidence you understand what happens to Jen's deposit.

We've already discussed where the bank gets the reserves. The Fed.

The bank loans $10,000 to Billy and asks the Fed for $10,000 to clear Billy's check?

Where does a bank get these reserves you think are a given?

The fed.
What I'm referring to.
Enlighten me on the clearing process, since you keep asking questions and refusing to explain why the check won't clear.

Enlighten me on the clearing process, since you keep asking questions and refusing to explain why the check won't clear.

A bank with no deposits loans Billy $10,000. They have no balance at the Fed, how would the check clear?

 

[Dovahkiin]

But at the end of the day, the bank will always get the reserves. They don't loan based on looking at the reserves they currently have. I still don't see evidence that a bank literally takes from Jen's deposit.

But at the end of the day, the bank will always get the reserves

Where does a bank get these reserves you think are a given?

They don't loan based on looking at the reserves they currently have.

Okay. So what?

I still don't see evidence that a bank literally takes from Jen's deposit.

I still don't see evidence you understand what happens to Jen's deposit.

We've already discussed where the bank gets the reserves. The Fed.

The bank loans $10,000 to Billy and asks the Fed for $10,000 to clear Billy's check?

Where does a bank get these reserves you think are a given?

The fed.
What I'm referring to.
Enlighten me on the clearing process, since you keep asking questions and refusing to explain why the check won't clear.

Enlighten me on the clearing process, since you keep asking questions and refusing to explain why the check won't clear.

A bank with no deposits loans Billy $10,000. They have no balance at the Fed, how would the check clear?

Well, a bank does need a balance at the fed... This is almost never a problem though.

 

[Toddsterpatriot]

But at the end of the day, the bank will always get the reserves

Where does a bank get these reserves you think are a given?

They don't loan based on looking at the reserves they currently have.

Okay. So what?

I still don't see evidence that a bank literally takes from Jen's deposit.

I still don't see evidence you understand what happens to Jen's deposit.

We've already discussed where the bank gets the reserves. The Fed.

The bank loans $10,000 to Billy and asks the Fed for $10,000 to clear Billy's check?

Where does a bank get these reserves you think are a given?

The fed.
What I'm referring to.
Enlighten me on the clearing process, since you keep asking questions and refusing to explain why the check won't clear.

Enlighten me on the clearing process, since you keep asking questions and refusing to explain why the check won't clear.

A bank with no deposits loans Billy $10,000. They have no balance at the Fed, how would the check clear?

Well, a bank does need a balance at the fed... This is almost never a problem though.

It's a problem for Billy's loan.

 

[Tom Horn]

I think you're confusing "money" with wealth. An economy grows by bringing more investors and borrowers into the process...they create more goods and services, forcing the government to create more currency to cover the increased transactions. As wealth is accumulated and reinvested, more investors and borrowers are created and so on.