Quote:
Originally Posted by aka123
Okay, here is my very drunken explanation about the subject.
As stated in that wiki, the money amount grows as the deposits too are considered as money.
You deposit 100, bank lends 90 of it, keeps 10. So, your deposit + the loan is 190. There you have it, the amount of money has grown (x1,9 times) as both are considered as money.
I hope that's good enough for you as I can barely write anymore, seriously.
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You are basicly saying the same thing. Only they were loaning out into the 100s and likely still are. As I said earlier part of their trickery is to loan you back your own deposit and keep your cash in reserves. Only when you withdraw actual cash does it affect their reserves.