Quote:
Originally Posted by aka123
You fucking quote it yourself and don't even get it.
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You my friend are the one who is not getting it. What do you not understand about this "ractional-reserve banking permits the money supply to grow beyond the amount of the underlying reserves of base money originally created by the central bank"
How exactly are they going to grow the money supply if they aren't leveraging their reserves? Do you really think your local banks is backing up your house or car note with cash on hand?