| Subject: | [socialcredit] fractional reserve | | Date: | Thursday, May 26, 2005 10:17:19 (EDT) | | From: | Triumphofthepast <Triumphofthepast @...com>
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"A lot of words and no answer. What amount then, according to you Bill, given
an approx 10% reserve requirement, would a bank be in a position to lend?" (Tim)
I can answer this question and save Bill the trouble. It could create-lend $900. If that $900 was then spent and redeposited in the same bank, then the same bank could create-lend $810, and so on. If deposited in some other bank instead, that bank could create-lend $810. Eventually, it adds up to $10,000.
Michael
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fractional reserve
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