>Well clearly because that's not what I wrote. You're mixing liabilities with assets and also redefining the money supply to include the bank
Wait, I thought the entire point is that FooBank is creating money? Do you want to pretend they don't exist?
>Not sure how borrowing $1000 leaves me with "-$1000" in assets or what that's supposed to mean
Ok, fine, you can have the $1000, it's not a loan after all.
Lemme update it:
At first:
Me: $1000 in deposits
FooBank: $1000 in assets - $1000 in deposits, total of $0
You: $0
After your non-loan:
Me: $1000 in deposits
FooBank: $1000 in liabilities, no assets
You: $1000
But! FooBank can never return my deposit at this point.
So the cold hard truth is...
Me: $0 in deposits
FooBank: (bust)
You: $1000
And so in the end, there is the same $1000 that there was in the beginning, no money created.
In sort-of real life, the FDIC would bail me out, I guess, and then I would have $1000, but that certainly would be the opposite of the bank creating it.
Wait, I thought the entire point is that FooBank is creating money? Do you want to pretend they don't exist?
>Not sure how borrowing $1000 leaves me with "-$1000" in assets or what that's supposed to mean
Ok, fine, you can have the $1000, it's not a loan after all.
Lemme update it:
At first:
After your non-loan: But! FooBank can never return my deposit at this point.So the cold hard truth is...
And so in the end, there is the same $1000 that there was in the beginning, no money created.In sort-of real life, the FDIC would bail me out, I guess, and then I would have $1000, but that certainly would be the opposite of the bank creating it.