On Tue, 3 May 1994, Istvan Oszaraz von Keszi wrote:
Sure she can, especially if she's depositted the money in a demand account. Let me simplify some more. Alice deposits her $1000, she then wirtes a check for a $1,000 and deposits it to her business account. She then writes a check on here business account and deposits it in another account, and so on, until she finally writes a check back to herself to cover her original check. Throughout the process, she has created money. Money which she can use to collect interest. This is known a s kiting and is illegal if an individual does it since they can use the created money to earn interest. As long as institutions keep accepting Alice's checks, she's creating money which she can use.
-snip-
Eaxactly, most financial institutions tend to "borrow" from their customers (Depositors) on the very short term, and lend on the long term. So if all the Alice's wanted their money at once, the
So the bank can float the $$ but not the individual. So much for "...these truths to be self evident, that all <persons sic> are created equal" - except when employing the golden rule <he with the gold etc.>. I can see the attraction of anarchy... -NetSurfer -----BEGIN PGP PUBLIC KEY BLOCK----- Version: 2.4 mQBNAi2Ig+EAAAECALImsR18LE9I6NKICf8TVhbV6yJgF95ynGHnWnNo1ERfdqzk Zl3Icl2N5klNM3KQ9zM3uN/z55smi2QOiD3hL80ABRO0L0phbWVzIEQuIFdpbHNv biA8amR3aWxzb25AZ29sZC5jaGVtLmhhd2FpaS5lZHU+ =JTj1 -----END PGP PUBLIC KEY BLOCK----- ................................ . == = = James D. Wilson. . " " " P. O. Box 15432............................. . " " /\ " Honolulu, HI 96830-5432......Fr. Excelsior........ . \" "/ \" jdwilson@gold.chem.hawaii.edu.FRC/FAM/AASR/GWB/OTO. ...................................................................