| reformedbanker - 5/22/2026 17:54
Maybe I commented on the wrong part of the thread. I was talking about regular banks, not the Fed or a central bank. Regular banks cannot lend money out of thin air, every dollar lent out must be sourced via core deposits or another source which could be FHLB borrowings, brokered deposits, etc.
So which is it, I take out a loan from my local bank and the money gets created out of thin air to make the loan or it doesn’t?
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Fighting inflation