mrstickball on 22 July 2010
Oh, and I'd note one other thing, Mafoo:
You erroneously assume that money will be loaned out, and paid back before more money is lent out again. That is not the case. Mortgage notes typically last 10-30 years. That is quite a long time in which to give the opportunity for the monetary base to inflate. I'd be interesting to see if there is any analysis on what typical cash reserve ratios are, after a given amount of time the money has been deposited.
Back from the dead, I'm afraid.
