MRW and the loaves and fishes

transaction Buckeroo @ Fed Johnny @ Buckeroo Sally @ Buckeroo Old Ray @ Buckeroo Paddy @ Buckeroo Somebody @ Buckeroo Somebody else @ Buckeroo Total @ Buckeroo Buckeroo's total @ Fed Total Bucks
Johnny deposits $100 to Buckeroo Bank 0.00 100.00           100.00 0.00 100.00
Buckeroo deposits $10 to the Fed 10.00 100.00           100.00 10.00 110.00
                     
Sally borrows $90, Bukeroo 'deposits' $90 to Sally's account 10.00 100.00 90.00         190.00 10.00 200.00
Buckeroo deposits $9 to the Fed 19.00 100.00 90.00         190.00 19.00 209.00
                     
Old Ray borrows $81, Buckeroo 'deposits' $81 to Old Ray's account 19.00 100.00 90.00 81.00       271.00 19.00 290.00
Buckeroo deposits $8.10 to the Fed 27.10 100.00 90.00 81.00       271.00 27.10 298.10
                     
Paddy borrows $72.90, Buckeroo 'deposits' $72.90 to Paddy's account 27.10 100.00 90.00 81.00 72.90     343.90 27.10 371.00
Buckeroo deposits $7.29 to the Fed 34.39 100.00 90.00 81.00 72.90     343.90 34.39 378.29
                     
Somebody borrows $65.61, Buckeroo 'deposits' $65.61 to somebody's account 34.39 100.00 90.00 81.00 72.90 65.61   409.51 34.39 443.90
Buckeroo deposits $6.56 to the Fed 40.95 100.00 90.00 81.00 72.90 65.61   409.51 40.95 450.46
                     
Somebody borrows $59.05, Buckeroo 'deposits' $59.05 to somebody else's account 40.95 100.00 90.00 81.00 72.90 65.61 59.05 468.56 40.95 509.51
Buckeroo deposits $5.90 to the Fed 46.85 100.00 90.00 81.00 72.90 65.61 59.05 468.56 46.85 515.41

This is like Jesus with the 5 loaves and 2 fishes. When everyone had had their fill there were 12 baskets left over.

Johnny is the only guy with any real cash. When the Buckeroo is done he's got $46.85 on deposit with Fed and there's $468.56 on deposit in his bank. He created [1] $415.41 from thin air. And he's still got $53.15 of Johnny's cash to run through. In fact Buckeroo will have created just about $900 from Johnny's $100 when he's finally built up $100 on account himself at the Fed.

Isn't that so? All the money deposited in the various accounts - except for Johnny's - are pulled out of the Buckeroo's 10 gallon hat. Nothing but book entries made at a keyboard just like this one. And now the Buckeroo sits back and collects the interest on the 'cash' he's pulled out of thin air and deposited in his bank.

Much better just to have a nationalized Fed pull the dough from behind our ears, for free. See Creating New Money for a more thorough explanation.

[1] Some people maintain there is a difference between banks creating 'credit' and banks creating 'money' but in fact most people, including those at the Bank of England, agree that banks lend money into existence and in fact create 97% of the money supply. See How do banks create money, and why can other firms not do the same? for a demonstration of the fact.