Refuting those who think
Refuting those who think banks can create money to lend out of nothing is too easy. Here's an item from yesterday's Times:
Quote:
Profits surge ahead at college-owned bankA start-up bank half-owned by a Cambridge University college has reported a fourfold rise in annual pretax profits to more than £10 million in its fourth year since opening. Cambridge & Counties Bank, which is 50 per cent owned by Trinity Hall, right, said that it had made a profit of £10.2 million last year as deposits rose by 21 per cent to £472 million.The Leicester-based lender focuses on small and medium-sized companies across Cambridgeshire and Leicestershire, attracting more than 1,600 business customers. At the end of last year, It had total assets of more than £500 million, with its loan book growing 66 per cent year-on-year to £416 million.
Just do the maths. It's up to the currency cranks to produce evidence of a bank lending more than it has in deposits from outside and what it's borrowed from the money market.