Nope, I'm not referring to fractional reserve banking. I'm literally referring to banks creating loans out of nothing but the promise to pay them back. I reali

Nope, I'm not referring to fractional reserve banking. I'm literally referring to banks creating loans out of nothing but the promise to pay them back. I realise this is fairly uncommon knowledge, and doesn't seem to make sense. I'd recommend watching this video for a brief synopsis of how it works. http://youtu.be/KvpbQlQwl0A http://youtu.be/KvpbQlQwl0A