Representational Monetary Identity

Download or read book Representational Monetary Identity written by Mirelo Deugh Ausgam Valis and published by Lulu.com. This book was released on 2011-10-31 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: Let us analyze what happens in commercial banking. First, we have a deposit. Then, we have a loan of up to a fraction (of 90%) of this deposit. Finally, the borrower can deposit the borrowed money into another bank account, in the same bank or not. Suddenly, the trillion dollar question emerges: is the borrowed money in these two bank accounts...the same? On the one hand, the answer is yes: all borrowed money came from the original deposit---so it is that same original money. On the other hand, the answer is no: all money deposited into the borrower's account possibly stays in the original depositor's account---so it is not that same original money. How can that be? (Digital version: http: //omniequivalence.com/representational-monetary-identity/