> The bank now has $100 - all your money. But your checking account says $100, and the loanee's checking account says $80, for a total of $180 you should learn

> The bank now has $100 - all your money. But your checking account says $100, and the loanee's checking account says $80, for a total of $180 you should learn about accounting. the loanee also has an $80 debt to the bank. no money is created. in fact, even if the bank didn't exist, in your fantasy land, basically everyone would be "money counterfeiters". let's construct a scenario. when you loan your aunt $100, you give her $100, and then you sign a little contract with her indicating she owes you $100. you now have an asset worth $100 (the contract), and she now has a fresh $100 bill. oh my god, you just magically created $100! you're a counterfeiter! when you deposit money in a bank, you loan them your money, which they then loan out. your checking account is essentially a low risk, pooled, variably timed bond that you buy from the bank. i have a question for you though. do you believe in free markets? if so, then why do you oppose fractional reserve banking, which, at its fundamental core, is a contractual agreement between two parties?