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[–] FUCK__ISLAM 0 points 2 points (+2|-0) ago 

You have it wrong by an order of magnitude. Assuming, as the graphic does, a 10% reserve ratio then at step 1 the bank will loan $9,000. They don't make loans with deposits, they use deposits as a basis for making loans. They create the money at the time it is loaned. The Federal Reserve and its member banks are a money-printing government-backed cartel. Yet they are rapacious and crooked enough to sometimes go bankrupt despite a license to print money and evil and brazen enough to ask for public handouts when they do.

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[–] JewsAreWhite 0 points 1 point (+1|-0) ago 

this is the way that i've understood it

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[–] TheAntiZealot 0 points 1 point (+1|-0) ago 

Good post. Great username.