[Toddsterpatriot]

When the banks loan out ten million dollars in mortgages and are required to hold only one million dollars of their assets in reserve - where do you think that other nine million dollars comes from?

For your example to make sense, the bank would need over $11 million in deposits in order to loan $10 million and hold reserves of their deposits of 10%.

Only the loans where 90% of the loan's value is created out thin are subject to the reserve requirement.

Commercial Banks don't create money out of thin air.

Only central banks can do that.

You really should read The Creature From Jekyll Island

I started it.

The silly errors early in the book showed it was a waste of time to continue.

[Garth Tater]

"Only the loans where 90% of the loan's value is created out thin are subject to the reserve requirement.

Commercial Banks don't create money out of thin air.

Only central banks can do that. "

No, not according to the article I just linked for you at Investorpedia. From the article:

"This cycle [the money multilier effect] continues as more people deposit money and more banks continue lending it until finally the $100 initially deposited creates a total of $500 ($100/0.2) in deposits. This creation of deposits is the multiplier effect."

[PGR88]

I would like someone to explain to me how central banks get money for “quantitative easing.”

The Federal Reserve now sits on $4.5 trillion of purchased Government and agency bonds. World-wide, central bank “balance sheets” are north of $15 Trillion. The Japanese Central Bank is the largest shareholder in 90% of the Nikkei index companies. The ECB buys so many bonds, many German government bonds pay NEGATIVE interest rates. The list of central bank perversity is endless.

Is this not sheer money-printing, designed to manipulate markets and interest rates, support governments, with the consequence of simply making member banks and the rich even richer?