1.BoE admits that Banks lend first even if, they do not have "reserves", and later borrow to make up[the difference].That is,banks,lend first, by creating "money"......
Reportedly,Central Banks have admitted,that Commercial banks create credit out of thin air.
An excerpt from the link above:-
"“[W]hen a bank makes a loan, it simply adds to the borrower’s deposit account in the bank by the amount of the
loan.
The money is not taken from anyone else’s deposit; it was
not previously paid in to the bank by anyone. It’s new
money, created by the bank for the use of the borrower.“
- Robert B. Anderson, Secretary of the Treasury under Eisenhower, in an interview reported in the August 31, 1959 issue of U.S. News and World Report""
Reportedly,Central Banks have admitted,that Commercial banks create credit out of thin air.
An excerpt from the link above:-
"“[W]hen a bank makes a loan, it simply adds to the borrower’s deposit account in the bank by the amount of the
loan.
The money is not taken from anyone else’s deposit; it was
not previously paid in to the bank by anyone. It’s new
money, created by the bank for the use of the borrower.“
Will be updated.............
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