Same with the UK now vs UK 100 years ago.

When they loan out 50¢ that isn't there anymore. Your account balance might show you one dollar but it's not money. It's what the bank owes to you, if they have it. There is still only 1 dollar.

I think we have the same understanding, just a different take on terminology.

What I'm wondering is if the commercial banks can get away with adding new electronic money. Maybe the commercial banks have a deal with government to create new money behind the scenes. Maybe there is too much risk of such a scam being revealed so maybe not.

You say more money in circulation is more money full stop, no?

I should note, I am not defending fractional reserve or anything, it's not at all good that fractional reserve dominates the banking landscape.

So, if I put my money into a savings account, according to you, I am decreasing the supply of money?

As you see, it depends on what you mean by money. If money is saved, is it no longer money?

Bank balances are not money. I do not consider my bank balance to be money, I do not consider my debts to be money.

Bank account balances are what the bank owes to me. Wether or not they have it, is another question.

It comes down to what you define as money. I do not consider today's fraction reserve banking to be creating money our of thin air. It does however increase loanable funds, places risk on depositor's wealth and places more money in circulation.

Quote the part which explains what you are going on about.

Is the so called "money creation" from commercial banks the same creation of new money from thin air the same type as from the central bank?

Can a bank loan out more than it has in loanable assets with out creating these assets out of thin air?

That isn't money, that is debt, which is financed from the excess reserves which exist as money.

Keeping to the US as an example, If the money supply counted all the dollars in existence, how can a commercial bank increase those dollars? They can't, can they?

I'm still missing the part where it says "commercial bank creates brand spanking new fiat money", rather than "commercial bank increases deposits by allowing borrowers to borrow existing deposits and then deposit these and so on".

When you view the money balance on your bank account, it is not money there for withdrawal at any time, under any circumstances, it is which money owed to you which is not there for withdrawal at any time, under any circumstances.

Can you direct me to something which explains this in full? I've only been aware of commercial banks lending out deposits and not creating new money.

I don't know much about this. Is it money created from central bank deposits or is it really banks creating money out of thin air? So the money don't not exist in the bank system at all until they create it and this is deemed as legal?

What about the pennies? I believe a gram of copper is close to 1¢ Though copper would be much harder to use a money, wouldn't it?

Paper certificates may work (And could also be used for bitcoin), if the banks which offered them were transparent enough.

Also that money as debt thing says that commercial banks create money which is not true. They lend out deposited money. The central banks create the money supply.

There are solutions to the physical currency problem already -> http://bitbills.com/

But would you use bitcoins for physical cash or would you rather use metals?

Do you offer a testing platform?

Oh look! Satoshi voted!

Now paint a real picture.

The app has been updated with feeds from The Adam Smith Institute and Bureaucrash.

I have also solved some issues.

Hope people enjoy the update.

Tell the child "And this is why we murder people.".

Don'd expect me to go ahead with it for definite.