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Milford, IL | Commercial Banks and Savings and Loan establishments are not the same as the Federal Reserve.
If you loan neighbor George $100 - that is the end of the line for that currency, no inflation.
If you desposit $100 in the bank and the fractional reserve requirements are set at 20% - the bank can lend $80 of your $100 to George and now there is $180 in circulation. Money supply grows.
Reserve requirements were lowered to 0% during Covid (infinite money glitch). Im not sure they have been raised since? | |
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Fighting inflation