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Well, you just linked a forum post on a forex trading website, I'm not sure how much weight I would put on that. However, I did read the link and did some own
by Jommi 7y ago
Well, you just linked a forum post on a forex trading website, I'm not sure how much weight I would put on that.
However, I did read the link and did some own research. I do see the argument that we need to revisit the causality of bank loans through the demand side argument. This however does not need to mean that "Fractional reserve banking does not exist". I'm not sure what makes you think that.
- ClumsyPilot 7y agoApologies, this is indeed a shitty link. The commonly held belief that banks require a deposit before they can hand out loans is a myth, the financial system has not worked that way for at least 40 years, if ever at all. A bank's ability to create new money is enormous, and proper explanation can be found in this paper by the Bank of England: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...
- Jommi 7y agoSo in a sense we agree right?