In practical terms, a 10% reserve really equates to more like an 8-fold increase. To say that a 0% reserve means that the reserve could expand infinitely is a b

In practical terms, a 10% reserve really equates to more like an 8-fold increase. To say that a 0% reserve means that the reserve could expand infinitely is a bit overstating the matter. There are practical limits purely based upon how many times a given loaned dollar can be deposited and re-loaned by a series of banks. Furthermore, the loans are not made at zero interest. The interest charged in the loan also serves as a break for monetary expansion. Of course, the issue here with a fractional reserve system of ANY kind is that it's impossible for the country to get out of debt without erasing the money supply. Without debt, there is no money. But the point I am making is that the Fed has had this power since the end of the Bush administration. Bernanke does not need to ask permission. The directors can lower the reserve requirement whenever they wish.