Full Reserve Banking

[Colonâ„¢]

I'm not entirely sure I understand what the fake one is proposing in the OP and clicking the link in that post gives me a 404 not found. I see a newbie explaining econ 101/basic aritmetic and the fake one having issues with it, which leads me to believe the site contained some very weird ****.

[Fake Boris]

BTW, I use average deposit with the meaning of average balance, which would be the correct term.

[hitokihitoshi]

i've already shown that every subsequent deposit is strictly smaller than the one proceeding it. this means that the average deposit must be strictly smaller than the initial deposit.

[Fake Boris]

I'm not entirely sure I understand what the fake one is proposing in the OP and clicking the link in that post gives me a 404 not found. I see a newbie explaining econ 101/basic aritmetic and the fake one having issues with it, which leads me to believe the site contained some very weird ****.

I'm not having any issue with the newb, I just don't understand what he's trying to say.

In any case, even if he turned out to be right, the point he's trying to make is not related to the OP, but rather to a sub-discussion with Rah about deposit multiplication.

[Fake Boris]

i've already shown that every subsequent deposit is strictly smaller than the one proceeding it. this means that the average deposit must be strictly smaller than the initial deposit.

Then we've framed the issue.

My discussion with Rah was about deposit multiplication from an average balance. I misused the term average deposit, taking it to mean "average value of deposited money in Rah's account".

[hitokihitoshi]

define average balance

BTW, I use average deposit with the meaning of average balance, which would be the correct term.

[Fake Boris]

sum of account balances after every change / number of transactions

[hitokihitoshi]

what does "after every change" mean?

[Fake Boris]

after every fluctuation in account balance

[hitokihitoshi]

okay. so, if D = total deposits and N = number of transactions, then you're talking about D/N?

[Fake Boris]

I'm not entirely sure I understand what the fake one is proposing in the OP and clicking the link in that post gives me a 404 not found. I see a newbie explaining econ 101/basic aritmetic and the fake one having issues with it, which leads me to believe the site contained some very weird ****.

Let me repeat the idea.

Central bank monetizes debt owned by banks by issuing currency.

At the same time, reserve requirements are increased, which forces banks to hold more money in their reserves, thus cancelling the inflationary effect of monetization.

[Fake Boris]

okay. so, if D = total deposits and N = number of transactions, then you're talking about D/N?

I think so, yes.

Perhaps a better measure would be balance at end of day / divided number of days, it all depends on what you're trying to do with the statement.

[hitokihitoshi]

so, your initial statement was the following: "If your average balance is 2K then they get to earn interest on 15-20K." if L = total loans, then this means D/N = 2K and L/N = 15-20K, yes?

[Fake Boris]

Seems about right. Bring it on, where are you trying to trick me?

[hitokihitoshi]

well i've already shown that L/D < 1, which is contradicts your claim.