Gold and Silver Juniors, Mid-tiers and Producers Message Board

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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: Valuepro who wrote (61918)	10/24/2008 6:31:01 PM
From: tyc:>	Read Replies (1) of 78410

>>- i.e., wealth (100 dollars + 400 dollars in loans), yet only the first 100 dollar deposit exists to support the total indicated wealth of 500 dollars I not sure* I agree with your suggestion that $100 deposit allows the creation of $500, the original $100 plus $400 of "paper". My understanding is that the original $100 deposit allows the lending of only (say) $80. However that $80 loan remains in the banking system because it is redeposited after use, and thus becomes another deposit which allows another loan of something less. Each deposit is the equal of the other. *(Come to think of it, I'm not sure of anything anymore, except that I am often wrong).

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