rationalskepticism.org

Panderos wrote:
What that video says is that this bit

UtilityMonster wrote:..whereby [banks] take in deposits and lend it out to other people...

Is not right - that they aren't lending out parts of deposits, but lending out of thin air. Personally I suspect the video is wrong and the banks have to borrow from the Central Bank in order to do this. But this still raises the question, if banks can borrow from a central bank why do they need depositors?

I hate this shit but at the same time my lack of understanding really bugs me..