True, BUT because banks operate on a fractional reserve system, it's quite likely that banks have available credit for lending (or creating, in the event of an

True, BUT because banks operate on a fractional reserve system, it's quite likely that banks have available credit for lending (or creating, in the event of an error such as this) for such a small amount without exceeding their fractional reserve. In other words, banks only have to hold 10% [1] of the money in everyone's account. The rest is loaned or otherwise invested to generate returns. So in a sense the money created IS real. At least, as real as any other money in a bank account. [1]: http://en.wikipedia.org/wiki/Reserve_requirement#United_States http://en.wikipedia.org/wiki/Reserve_requirement#United_Stat...