“M3 arises when you come to the branch to ask for a loan, I approve it, I open you a bank account and stick the money in there (the bank’s liability) in exchange for expecting you to pay me back one day with interest (the bank’s asset).

“Then you buy stuff, your money moves to the bank account of whoever sold you the stuff, the bank’s asset remains your loan but the bank’s liability is in the bank account of the guy who sold you the stuff.

“No saver ever got involved in this, and that’s where 90% (actually more) of all money in the world comes from.”

http://www.amazon.com/Foolproof-Safety-Dangerous-Danger-Makes/product-reviews/0316286044/ref=cm_cr_pr_viewpnt_rgt?ie=UTF8&filterByStar=critical