^^^ this is basically how it works.
How Digital industry thought that banks don't lend out money that is deposited into banks is beyond me and couldn't be further from the truth!
You're all wrong (at least partially), unless I'm mis-interpreting something you guys said. The local banks lend out money that they have, but the majority of that money is not depositors money, it's money from a bigger bank that they borrrow from. That bigger bank in turn borrows it from a bigger bank, think Bank of (un)America(n). Those banks in turn borrow money from the Federal Reserve which is the entity that illegally prints money out of thin air. (That's actually the Mint's job as per the Constitution, but apparently the reserve too big to jail.) You're welcome. Oh by the way, the Federal Reserve's board of directors is made up of executives from the biggest 13(? I think thirteen) banks.
Wrong again ,
Its beautiful to watch at least 15 or more people realize their life is a lie...
The money is not " loaned from a bigger bank " it is created , it is new money that did not exist before , it is by definition inflating the money supply , it did not exist before .
New loan = new money .
Paid loan = extinguished money .
Any intelligent guy want to have a crack at the rest of this .....
There is another ingredient that makes this whole equation much more interesting , lets play .
Guess what it is . ? ?