"Please, I don't want to get into this any deeper. They have money aside for their day to day transaction but their lending is all based on Tier 1 ,2 &3 reserves that they leverage off in to thin air(Digital Domain)."
No, they are not. Banks can not lend reserves. Reserves are only for a)settling interbank overnight transfers, b)satisfying whatever reserve requirements exist; some countries have 0 reserve requirements. Banks need to be adequately capitalized, you will know about it in by their SP if they are not.
Here is a quote from Scott Fullwiler
“The bank does not “use” cash to make a loan. The loan creates a deposit. If cash is withdrawn by the borrower this reduces its deposits. So, the cash is “used” in the process of settling a borrower’s withdrawal. This is the key point that confuses so many–banks don’t “use” cash or reserves to make loans since those are merely bookkeeping entries. They need cash or reserves to settle withdrawals that arise from creating the loan/deposit.”
I don't know what your on about house prices doubling in CBD's every 8-10 years to keep the 'ponzi' scheme going, but your incorrect however it is to be interpreted.
It is not a ponzi scheme, when banks lend, they create a both a deposit, and a liability which sum to zero.
