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I would like to understand how dollars are created from banks I would like to understand how dollars are created from banks
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03-19-2023 , 09:25 PM
#1
PointlessWords
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As I understand it;

You deposit $10k into a DDA account, like a checking or savings and the bank is able to loan out $100k in credit card “credit” to customers.


Where does the $90k come from? Can the bank just open up new lines of credit but then when the customer spends $90k, where does the bank get $90k to pay whomever the customer spent the money with?

Does the fed send it to the bank ? Is that bank allowed to make the dollars appear? I’m confused
I would like to understand how dollars are created from banks Quote
03-19-2023 , 09:56 PM
#2
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Montrealcorp
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Bank can create money out of thin air .

https://www.attejuvonen.fi/money-out-of-thin-air/
I would like to understand how dollars are created from banks Quote
03-19-2023 , 10:30 PM
#3
PointlessWords
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Full tilt didn’t create dollars tho
I would like to understand how dollars are created from banks Quote
03-20-2023 , 01:37 PM
#4
BrianTheMick2
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Just like at the center of a galaxy lies a supermassive black hole, at the center of a bank is a leprechaun. The leprechaun makes the money.

When the leprechaun tries to escape by foot, that is a bank run. When the leprechaun becomes exhausted and falls, that is a bank collapse.

You'd probably be better off trying Google if you want to learn about how banking works. All you'll get here is some nutters making up random nonsense.

Try googling, "how banking works."
I would like to understand how dollars are created from banks Quote
03-20-2023 , 04:06 PM
#5
krunic
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The mechanics of money creation are rather complex. It's better to just show you than to explain it:













I would like to understand how dollars are created from banks Quote
04-11-2023 , 10:17 PM
#6
mindflayer
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Quote:
Originally Posted by PointlessWords
As I understand it;

You deposit $10k into a DDA account, like a checking or savings and the bank is able to loan out $100k in credit card “credit” to customers.


Where does the $90k come from? Can the bank just open up new lines of credit but then when the customer spends $90k, where does the bank get $90k to pay whomever the customer spent the money with?

Does the fed send it to the bank ? Is that bank allowed to make the dollars appear? I’m confused
I think you are confusing banking fractional reserves at 10%
https://www.youtube.com/watch?v=gd8B-zrMSYk

with with how the Fed creates dollars.
Excellently explained by Ray Dalio in 30 minutes.

https://www.google.com/search?q=ray+...id:PHe0bXAIuk0
I would like to understand how dollars are created from banks Quote
10-27-2023 , 07:13 PM
#7
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From a professor I respect a lot .
Short and sweet .
I would like to understand how dollars are created from banks Quote
10-28-2023 , 04:02 PM
#8
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Quote:
Originally Posted by PointlessWords
As I understand it;

You deposit $10k into a DDA account, like a checking or savings and the bank is able to loan out $100k in credit card “credit” to customers.


Where does the $90k come from? Can the bank just open up new lines of credit but then when the customer spends $90k, where does the bank get $90k to pay whomever the customer spent the money with?

Does the fed send it to the bank ? Is that bank allowed to make the dollars appear? I’m confused
I'm perfect at explaining this, its my speciality and brain the mick balked on a 1k usd bet with me that i could make a fool of him on the subject.
I would like to understand how dollars are created from banks Quote
10-28-2023 , 04:02 PM
#9
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Quote:
Originally Posted by krunic
The mechanics of money creation are rather complex. It's better to just show you than to explain it:
thats not how it works
I would like to understand how dollars are created from banks Quote
10-28-2023 , 04:03 PM
#10
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Quote:
Originally Posted by BrianTheMick2
Just like at the center of a galaxy lies a supermassive black hole, at the center of a bank is a leprechaun. The leprechaun makes the money.

When the leprechaun tries to escape by foot, that is a bank run. When the leprechaun becomes exhausted and falls, that is a bank collapse.

You'd probably be better off trying Google if you want to learn about how banking works. All you'll get here is some nutters making up random nonsense.

Try googling, "how banking works."
This is of course an asinine way of thinking about things.
I would like to understand how dollars are created from banks Quote
10-28-2023 , 04:05 PM
#11
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jbouton
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Quote:
Originally Posted by PointlessWords
As I understand it;

You deposit $10k into a DDA account, like a checking or savings and the bank is able to loan out $100k in credit card “credit” to customers.


Where does the $90k come from? Can the bank just open up new lines of credit but then when the customer spends $90k, where does the bank get $90k to pay whomever the customer spent the money with?

Does the fed send it to the bank ? Is that bank allowed to make the dollars appear? I’m confused
The short answer to help you know that we can have a great conversation about this, is the bank takes great care to make sure the loanee doesn't take out the $90k as cash.

After brian the mick squirms to try to look like they aren't a fool. Then we will open a great an sincere dialogue on the subject.



go for it brian, try to not look silly every word you add...
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10-28-2023 , 04:07 PM
#12
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Quote:
Originally Posted by Montrealcorp
Bank can create money out of thin air .

https://www.attejuvonen.fi/money-out-of-thin-air/
no they can't.
I would like to understand how dollars are created from banks Quote
10-28-2023 , 05:16 PM
#13
Maximus122
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Commercial banks can create money through a system called fractional reserve banking.

Bill deposits $1000. The bank keeps $100 as a reserve requirement and lends $900 to Tim. There's now $1900 in the financial system. Bills $1000 deposit and Tim's $900 loan.

Next Tim uses his $900 loan to buy a phone from Sarah. Sarah deposits her $900 into the bank. The bank keeps ten percent of the $900 and loans $810 dollars to George.

There's now $2710 dollars in the system. Bill's $1000 deposit, Sarah's $900 deposit and Georges $810 loan.

This goes on until Bills initial $1000 has turned into $10,000.
I would like to understand how dollars are created from banks Quote
10-28-2023 , 05:26 PM
#14
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jbouton
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Quote:
Originally Posted by Maximus122
Commercial banks can create money through a system called fractional reserve banking.

Bill deposits $1000. The bank keeps $100 as a reserve requirement and lends $900 to Tim. There's now $1900 in the financial system. Bills $1000 deposit and Tim's $900 loan.

Next Tim uses his $900 loan to buy a phone from Sarah. Sarah deposits her $900 into the bank. The bank keeps ten percent of the $900 and loans $810 dollars to George.

There's now $2710 dollars in the system. Bill's $1000 deposit, Sarah's $900 deposit and Georges $810 loan.

This goes on until Bills initial $1000 has turned into $10,000.
absolutely not.
I would like to understand how dollars are created from banks Quote
10-28-2023 , 05:38 PM
#15
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Quote:
Originally Posted by jbouton
no they can't.
So debunk prof Warner analysis .
8m-11m
Last edited by Montrealcorp; 10-28-2023 at 05:43 PM.
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10-28-2023 , 05:48 PM
#16
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Quote:
Originally Posted by Montrealcorp
So debunk prof Warner analysis .
8m-11m
Yup i can perfectly. we are waiting for BTM to show their true colors. They made fun of me for this and the mod wouldn't let me defend my knowledge

(i checked the timestamps to know what you are referencing)
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10-28-2023 , 06:00 PM
#17
Maximus122
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Quote:
Originally Posted by jbouton
Yup i can perfectly. we are waiting for BTM to show their true colors. They made fun of me for this and the mod wouldn't let me defend my knowledge

(i checked the timestamps to know what you are referencing)
You don't have any knowledge.

You're a donkey.
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10-28-2023 , 07:08 PM
#18
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Quote:
Originally Posted by Maximus122
You don't have any knowledge.

You're a donkey.
The way you explained how the system works. Shows you don't understand it.
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10-28-2023 , 11:01 PM
#19
BrianTheMick2
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Long way to go and a short time to get there.
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Quote:
Originally Posted by jbouton
Yup i can perfectly. we are waiting for BTM to show their true colors. They made fun of me for this and the mod wouldn't let me defend my knowledge

(i checked the timestamps to know what you are referencing)
I prefer "he/him" when referring to me.

I do appreciate that you did not make that assumption.

If you'd like me to Google for you how fractional banking works or how the federal reserve creates money, I decline. I simply do not Google for other people.

Also, stop casting aspersions on an excellent mathematician. We don't bring up Newton and his theories about ghosts for a reason. It is just rude.
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10-28-2023 , 11:35 PM
#20
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jbouton
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Quote:
Originally Posted by BrianTheMick2
I prefer "he/him" when referring to me.

I do appreciate that you did not make that assumption.

If you'd like me to Google for you how fractional banking works or how the federal reserve creates money, I decline. I simply do not Google for other people.

Also, stop casting aspersions on an excellent mathematician. We don't bring up Newton and his theories about ghosts for a reason. It is just rude.
awesome we can begin!

no i have a deep understanding of fractional reserve banking...

for example this is wrong:

Quote:
Originally Posted by Maximus122
Commercial banks can create money through a system called fractional reserve banking.

Bill deposits $1000. The bank keeps $100 as a reserve requirement and lends $900 to Tim. There's now $1900 in the financial system. Bills $1000 deposit and Tim's $900 loan.

Next Tim uses his $900 loan to buy a phone from Sarah. Sarah deposits her $900 into the bank. The bank keeps ten percent of the $900 and loans $810 dollars to George.

There's now $2710 dollars in the system. Bill's $1000 deposit, Sarah's $900 deposit and Georges $810 loan.
google doesn't fix that.
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10-28-2023 , 11:37 PM
#21
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jbouton
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I can teach us all to have a strong understanding of this, and then we will know im the expert. not btm.
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10-29-2023 , 01:53 AM
#22
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Quote:
Originally Posted by jbouton
I can teach us all to have a strong understanding of this, and then we will know im the expert. not btm.
Could u please refer on how Wagner is wrong ?
Thx.

Ps: please don’t conflict creating money out of thin air as the same as being able to create an infinite amount of money ….
There is limits.
Last edited by Montrealcorp; 10-29-2023 at 02:02 AM.
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10-29-2023 , 02:36 AM
#23
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jbouton
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Quote:
Originally Posted by Montrealcorp
Could u please refer on how Wagner is wrong ?
Thx.

Ps: please don’t conflict creating money out of thin air as the same as being able to create an infinite amount of money ….
There is limits.
I can but I'm hoping to show that BTM doesn't know what he's talking about, he's a bully.

And no its not your ps.

If banks create money out of thin air, what do mainstream economics claim? Do they agree, what do they say?

Im an expert on this subject, not banking per se, but the difficulty of this inquiry. And it leads to a special understanding of bitcoin.
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10-29-2023 , 09:30 AM
#24
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jbouton
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Quote:
Originally Posted by BrianTheMick2
Just like at the center of a galaxy lies a supermassive black hole, at the center of a bank is a leprechaun. The leprechaun makes the money.

When the leprechaun tries to escape by foot, that is a bank run. When the leprechaun becomes exhausted and falls, that is a bank collapse.

You'd probably be better off trying Google if you want to learn about how banking works. All you'll get here is some nutters making up random nonsense.

Try googling, "how banking works."
Did you guys not try googling 'how banking work' like btm taught you? Btm is so smart. If I'm wrong about you guys interpretation, why didn't btm point out my mistake and explain to you all?

Brianthemick isn't smart. They just bullying the forum as IF they are smart.
I would like to understand how dollars are created from banks Quote
10-29-2023 , 02:10 PM
#25
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jbouton
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now that we have settled the btm problem...

we are asking, 'what is the difference between money created by the central bank and money create by commercial banks.'

btm doesn't know so he will tell you to google it, but google isn't helpful in sorting other difficult inquiries.
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