| reformedbanker - 5/22/2026 19:38 Money is created, M2 grows with the loan because we know not all depositors will demand their funds back tomorrow. If they did, banks would have have to excersize the demand feature of most loans... in theory. In reality, Fed backstops the run.
So there will never be a shortage of money to loan out because they are creating it out of thin air. And banks NEVER have to pay up to secure capital to loan out.
It’s a glorious system of legalized theft created by those that benefit greatly from it.
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Fighting inflation
