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View Diary: America's form of capitalism kills free enterprise and democracy (95 comments)

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  •  Banks don't lend out consumer deposits. (0+ / 0-)

    In fact, consumer deposits are liabilities of the banks.  Banks are capital constrained and not reserve constrained.  Your understanding of banking is wholly out of paradigm with our modern monetary arrangements.  Loans create deposits and then find the reserves to satisfy their Govt mandated settlement balances within roughly 2 weeks of the original loan.

    MMT = Reality

    "The Earth is my country and Science my religion" Christiaan Huygens.................... Please join our Kos group "Money and Public Purpose". The gold standard ended on August 15, 1971, its time we start acting like it.

    by Auburn Parks on Mon Sep 02, 2013 at 08:48:51 AM PDT

    [ Parent ]

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