| Subject: | Re: [socialcredit] Re: Worldwide Money Creation Tsunami | | Date: | Saturday, December 6, 2008 18:19:01 (+0100) | | From: | Swieto Radosci <radosc @........pl>
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| In reply to: | Message 5761 (written by Graeme Taylor) |
Graeme Taylor wrote:
> If regulators say to up the ratio, banks need to put up interest rates
> on deposits, and/or reduce the amount of loans they have been creating.
Could you please explain, how "putting up interest rates on deposits"
may cure the situation of banks being short of reserves? Banks cannot
treat deposits as their assets.
On the other hand, banks could borrow money to compensate for reserve
lending ratio increase, or reduce the amount of loans.
Kristof Levandovski
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