Reply #57: There is effectively ONE bank [View All]

[MindMatter]

It is the FED. The walls between banks are porous. Money from bank A spills to bank B. Money from bank B spills to bank A. It is all the same pool and all one multiplier.

To settle this in your mind, simply consider the case where all the multiplication occurs within a single bank. Then you should understand that it doesn't change the concept or arithmetic at all if some of the money jumps back and forth across those bank boundaries.