What are you trying to say? This is useless information. Yes, banks can lend their excess reserves. So what?
Not quite. They don't have excess reserves. They just have a license to print money (fractional reserve). In other words, when you apply for a loan, all they do is go print a check and hand it to you. There is nothing behind it. In other words, if you don't repay loan, the bank didn't lose anything. They can print about $9 in loans for every $1 that they have, which in practice means they can print as much money as clients request I think Briant is trying to say that it's a scam industry. Fractional reserve system is prone to collapse if economy is bad and too many people withdraw funds, like it happened during Great Depression. I don't keep my money in the bank (unless I am very very sure there is no recession in foresight) and if I did I wouldn't feel comfortable about it at all
Excess reserves are still needed in order for a bank to create money. However, the fractional reserve system allows that money to be multiplied by the money multiplier. This will give you the potential deposit creation formula, which is going to be significantly higher than the original excess reserves. That was in the old days when individual banks had total control over the money supply. It's different today. Reguations reqiure banks to maintain minimum CRs and RRRs. There are many other restrictions in place to prevent banks from going overboard.
When did Thomas Jefferson say that I wonder? Not that I doubt it. The guy who wrote that article doesn't even seem to know the difference between a fiscal policy and a monetary policy.