Thanks, Buddha C. Nice talking to you too. I'll see you around the board.
Wow, that takes a lot of character to do that. Most people would just fight it to the death of them and hope the other guy gets tired first, like me xP. Very nice talking with you and have a great day, Centinel .
Aye, you can't blame him though. First time I really thought about the money multiplier it drove me crazyyyyy. I had the same problem, the money in banks is usually susceptible to redemption, not from other banks that would continue to use it, but from the common person. What happens when down the line someone takes it out and cuts the multiplier short? But then you have to look at 'high-powered' money which comes directly from the Treasury (or Fed) which are written on the Fed (at least I hope so, because this is the only way I thought about it that it made sense haha) which by law forces them to deal with only banks. And from there it becomes easy since the depositor is either Fed or the Bank and then the whole consumer's role gets phased out and its clear.
Thanks man. I'm glad I was able to explain myself effectively.
Well, more semantically the money multiplier but yes. (I think he said in your thread as well that the only multiplier was from consumption)
What about banks creating money?
Already tried to explain the exact same thing to imagep btw, good luck.