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Comment: Re:Shocked (Score 5, Informative) 169 169

It works like this: Say the banks are allowed to lend 90% of the money that is deposited, and have to keep 10% of it. Then Alice deposits $1,000. This means that the banks lend out $10,000 since they had to keep 10% of the money. If the government wanted to create money, rather than bothering with silly printing presses at the mint, they could declare that banks could lend 95% of the money deposited. Then if Alice deposits $1,000, the banks could lend out $20,000.

Now, you might have noticed my numbers aren't quite what you expected. Well, it works like this (when the banks lend 90% of a deposit). Alice deposits $1,000. Then Bob borrows $900, and deposits it in a bank. Then Charlie borrows $810, and deposits it. Then Dylan borrows $729, and deposits it... By the time everyone is done borrowing, depositing, and lending, 10 dollars have been lent for every 1 deposited. Of course, in reality only some of the borrowed money gets deposited immediately -- some of the money gets spent and put in a bank, and some gets kept around in wallets or under a mattress. But yeah, most of the money people "have" is in fact created out of thin air, not even paper.

Just don't ask what happens when too many people want to withdraw their money from the bank.

Comment: Re:Penalty for obvious false claims (Score 1) 96 96

Please reply if you think eternity getting their guts ripped out by demons and being force-fed their own excrement and piles of flaming coals, while being skull-fucked by enraged hell-bears (or whatever it is, I never paid much attention to mythology,) is inadequate for copyright trolls, and write-in what YOU believe would be a more appropriate comeuppance. Thanks!

No -- copyright trolls are doing us a very important service. The people who need to have their guts ripped out by demons etc are the assholes who wrote the laws that have these horrible abusive provisions which the intellectual property trolls are so elegantly demonstrating.

There is no opinion so absurd that some philosopher will not express it. -- Marcus Tullius Cicero, "Ad familiares"