With some trepidation, it can be said the ‘fractional reserve banking system’ now makes more sense to me, bizare though it is.

It did not take long for me to find these bloggers of which you speak, and it was mainly through these that i was able to cast some meat on my own theories and questions.

At that time, in the late 90′s, the burning question was, ‘where is all the money coming from to finance all these legion of loans i see every one busying themselves with??

One of the most revealing studies of my life.

From a genuinely interested ‘newbie’ perspective.

And thanks!!

Great article.

P.S. I have taken a particular interest to how money is destroyed of late. This was an equally interesting study as well.

Quite possibly more bizarre than the process of spinning money out of thin air.

The idea that checkbook money is actually destroyed or cancelled out by the process of paying down a loan took a while to fathom.

I am only now understanding the implications this might have for accelerating the contraction of the money supply at an even faster rate.

Lots to keep me thinking about here.