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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 427.64-3.9%4:00 PM EST
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To: Elroy Jetson who wrote (108632)11/27/2014 11:43:02 PM
From: bruiser98  Read Replies (2) of 219959
 
>>>When money is created through new debt to buy a home, fund a business or any other reason, this increases the amount of the money supply for the duration of the loan. When new loans are made, this increases the amount of money available - which in turn drives interest rates down.<<<

But banks don't lend out deposits, reserves, or excess reserves. The banks create new credit money with every loan. The bank just types in the loan amount into the borrower's account. I wonder what keeps the banks from typing in figures into the BUY TREASURIES account or the BUY STOCKS account or the PAY FINES account or the FUND HILLARY"S CAMPAIGN account.

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