To sum this up.
The authorized money creator (The federal bank)
creates 1 000. This will grow with the factor you allow the banks to loan out.
90% means 10 000 is really created.
It looks alarming when you look at it this way but if
you take it in calculation when the core money is created its not that bad. If
there is a need for 10 000 on the market FED (the federal bank) creates 1 000.
What you also need to consider is that when exchange
take place things gets created. If a hammer is created every time 10 change
hands between two persons you will have 10 000 + 1 000 hammers. If you reverse
the process FED will destroy 1000 again and someone will be sitting on 1 000
So you will have more then you started with.
The option is to remove banks from the equation and
FED will make all the money. Then they just create 10 000 instead and loan it
out directly to the people who needs them. Every coin will have a serial number
and when its deposited in the FED it will not be loaned out again
You will figure out how to ace as opposed
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