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RE: The Mathematics of Fractional Reserve Banking

in #mathematics8 years ago

As I cannot reply directly to you, due to nesting comment limitations, let me say that the purpose of the headline was to be an attention grabber. Did I ever say that I (personally) had a problem with the system -- or was I relying on the marketing of the title to entice people who do have an issue with the current paradigm -- to take a peak. If the result is that I am able to teach some basic mathematics to people and how it applies in an area of society that affects them daily and let them draw their own conclusions ... then wonderful.

Regardless, if you can agree with that definition of money multiplication, as in any increase in the monetary supply beyond the initial amount borrowed, then, I can assure you that this increase in the monetary supply can be solely attributed to a mathematical phenomena.

I don't follow your claim that I assume an infinite credit supply -- or I am ignorant of the economic terms.

Please, enlighten me.