Alright, we left off at a wonderful point where Roon once again is trying to tell me that 2+2 does not = 4. What's so funny is inside your head you honestly think you are correct about this. Banks DO NOT LEND reserves. Reserves never leave the system unless they are exchanged for currency. The reserve requirement is the ratio between reserves and deposits. So if there are $100 in reserves and $500 in deposits. The bank has $50 in required reserves and $50 in excess reserves... aka $100 in reserves. If they make $500 more in loans than the bank has $100 in reserves and $1000 in deposits. I suggest you take a step back and just listen rather than talk because you are confusing those that actually do want to learn. This is absolutely incorrect. The Fed has no control over how much Congress spends and Congress does not need the Fed to create money for them to spend. You are 100% wrong about this... but I'm sure you will continue spouting the same nonsense. And I have never once said the Fed does not make money. I said they make a "form" of money that does not add to the amount of money we have.
And if you don't believe me, then here is what the Fed says about their monetary operations... Source: http://www.federalreserve.gov/faqs/money_12853.htm And if you don't understand how the banking system works, I suggest you read... http://www.rayservers.com/images/ModernMoneyMechanics.pdf I know it doesn't have very many pictures and it's more than a paragraph long so the majority will not want to read it.