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Now you know why politics and religion are connected.

I’m glad that you admit that you don’t understand the equation and are unable to solve it. I’m also glad you admit that you admit that you don’t understand Basel2 and wikis definition of bank reserves.

I can understand that you in lack of this understanding invent your own definitions as a compensation. But thinking that bank transfers equals creating credit is also wrong, sorry!

And you still don’t know what a bank run is. Hard to invent something to replace it with?

You cannot take $1 with no deposits, put the $1 in reserves and conjure $99 to loan.

Glad you can finally see that.

I’m just glad you finally admitted a bank can’t invent money to loan out. That customer deposits (or borrowings) are needed.

It was worth it to see you finally admit the truth.

Even though you have admitted that you couldn’t solve the eqaution or understood Basels2 definitions on needed bank reserves in the eqaution you contuinue prenting as if you know what you are talking about. Thats sad.

And you still don’t know what a bank run is.

“I have said they don’t create it from the costumers deposits. They create it based on their bank reserves by expanding both sides of the balance sheet”

OMFG! Still funny.

I’m glad you finally understand that the wire can’t occur just because you add something to a bank statement. LOL!

It’s been fun teaching you. Maybe your next video will have fewer errors, thanks to me.

My lessons are free of charge.

Glad you admit that you don’t understand the formula and what no needed bank reserves are according to Basel2. Glad you admit that you where unable to solve it.

“How about admitting you don’t understand what a bank run is?”

What does a large draw down in customer deposits have to do with anything?

You don’t think a bank needs customer deposits. If that were the case, why is a bank run bad?

“According to Basel2 to the needed bank reserve is zero”

You’re not borrowing to add to your reserve. You don’t need any reserve. LOL!

According to Basel2 to the needed bank reserve is zero. Glad that you admitted that you can’t solve the eqaution and don’t understand it. How about admitting you don’t understand what a bank run is?

“The recycling of customers deposits is not needed – it just leads to the false impression that the loan is created out of customers deposits”

Oops. LOL!

“I haven’t admitted any error”

Sure you did.

“So you pay taxes for loans taken by your states that the banks literally made of nothing (they don’t need any customers deposits to do it – they just put the figures in the book keeping – backed by nothing)”

Borrowing excess reserves from other banks (reserves from customer deposits, BTW) is not what you originally claimed.

See, my hard work was worth it to show you the truth. Glad to help.

But I guess you never will understand what a bank run is (and least of all admit it)

I haven’t admitted any error (nor have you admitted that you cant solve the simple equation I was forced to solve for you). I have talking about needed bank reserves to create loans to municipals and states according to Basel2 is zero. You haven’t, until now, admitted your mistake that is the case either. Glad you do admit it now though, both concerning your failure to solve the equation and not understanding that zero bank reserves are required according to the Basel2 agreement.

“Do you mean that the bank can’t lend money from others banks or the central bank when they run out of disposable bank reserves? You mean that interbank lending don’t exist nor repo?”

Excellent! I’m glad you’ve finally admitted your error. Well at least one of them.

Did you see yet that customer deposits add to reserves?

Good you understand that transfers between banks don’t create credit. but you still don’t understand what a bank run is..

Do you mean that the bank can’t lend money from others banks or the central bank when they run out of disposable bank reserves? You mean that interbank lending don’t exist nor repo?
This is beyond ridiculous.
Try to understand the Basel2 formula on needed reserves to create credit and understand that it got nothing to do with bank transferes. Study some basic math

“nd how did the transfer money created the credit?”

Transfering money doesn’t create a credit.

“Show me the formula on how credit is created from transfers between banks.!”

It’s not.

“Banks can lend from the central bank if they don’t have any bank reserves left”

Banks can’t lend from…..Are you saying a bank with no reserves and no deposits can borrow from the Fed?

Yes you are the LOL master.
And how did the transfer money created the credit? Show me the formula on how credit is created from transfers between banks.! Have you ever heard of repo? Banks can lend from the central bank if they don’t have any bank reserves left.

And you still don’t know what a bak run is and can’t solve the simplest equations. You are uber LOL master.

“Bank transfers are not credit creation”

Great, how do you wire the loan if your balance at the Fed is zero? LOL!

When you are able to understand and solve the eqaution you will be able to understand it. This is meaningless since your math knowedge is close to zero (I mean the eqaution I solved for you is child play – and you can’t solve it!).
And reading your text about bank runs it’s apperant that you don’t even know what that is.

Bank transfers are not credit creation, there’s another hard one for you to understand.

Did you ever admit that customer deposits add to bank reserves?

“They create the amount from nothing putting it on the banks balance sheet”

The borrower doesn’t want his money on the balance sheet of Bank of MoneyConfusion2.

They want the money wired to their account of Bank of America. Now what?

But you don’t really understand what a bank run is, do you?

They create the amount from nothing putting it on the banks balance sheet. It didn’t exist before and was created based on zero bank reserves. When you are able to solve the eqaution youi will be able to see that. perhaps it wasn’t so pedagogical to solve it for you.

You almost understand what a bank run is! Great!