Re:Follow the money: Apple vs. the FBI
by stretchwithme on Tuesday March 29, 2016 @08:23PM
(#11386093)
I know you think it works that way. But can you point to any authoritative evidence that it works that way?
A simple statement on a Federal Reserve web site stating that such a bank has to keep deposits and that the loan comes from new money created should be sufficient.
FRS is the act of central banks allowing banks to add money on accounts up to the ratio amount.
In other words. Banks can create money "out of the blue" since most money are just numbers and not actual cash.
Lending out money this way is not affecting any other accounts. No money is being taken from somewhere and put into the lendees account. Instead banks are allowed to create the loan which is debt, not to the bank but to the lendee. To the bank this is an asset to the lendee this is debt.
In other words the bank have more money after they give the loan not less.
It doesn't get much clearer hat than that IMO.