That is how it works for a merchant bank or investment bank. It is not how it works for commercial banks under the debt money system.The bank for any loan must withdraw the money from its own cash account - which it holds from the deposits of the customer cash accounts (among other sources, such as share capital etc.)
See "Modern Money Mechanics" published by the US Federal Reserve.No bank in the world merely types digits into someone's account to make a loan!
They are quite different. Obviously.You, too, are totally confused by digits in a computer vs. paper.
As the contents of demand deposit accounts are generally accepted in exchange, they are by definition money.No, it is NOT MONEY and it is ACCOUNT ENTRIES!
As they say in Japan, "It's mirror time!"I will suggest that you do not understand the banking industry.
You can't simulate bank creation of debt money with a Monopoly set.Get out the monopoly set and show me where this money creation happens.
No, it is not.Of course this is a fiat money system!
But it is created as debt, not currency.Money is manufactured on demand without physical restraint.
See "Modern Money Mechanics," published by the US Federal Reserve.Banks do not create money.
No, customer deposits are used as reserves, against which to create debt money.They lend depositor's money,
By creating debt money on which to charge interest. Right.and they do need borrowers because that is how a bank normally makes its money.
OK, so you agree you were wrong. Good.Because they are scared to death you won't be able to pay it back.
"The Federal National Mortgage Association (Fannie Mae) is the nationís largest mortgage buyer"Fannie is doing no such thing.
Mises’s definitions of money - the most marketable commodity
and credit -the exchange of present goods for hoped-for future goods.
Ignoratio elenchi fallacy.We do not price things based your promise to pay.
Including demand deposits, which are denominated in AND CONTAIN money.We price things in terms of money
No, Captain Ignorance, it is YOU who are unable to distinguish between a promissory note or IOU, neither of which is generally accepted in exchange, and a demand deposit, which is.You are ignorant in being unable to differentiate between a debt instrument like a IOU or a Promissory Note and money