> banks don’t need your deposits to create new money. They just do. Yes, exactly. The key phrase here is loans create deposits When you take out a loan, the

> banks don’t need your deposits to create new money. They just do. Yes, exactly. The key phrase here is loans create deposits When you take out a loan, the bank conjures the casino chips from thin air and increases the numbers in your bank account. Eventually the bank's reserves at the central bank need to be a percentage of their liabilities