When it’s being formally discussed by MMTers it’s called the loanable funds theory. Banks do not lend out depoists.
When it’s His Tuberosity it’s banks just don’t need deposits at all.
Reality then offers us this:
Savings rates have reached a 13-year high after banks passed on higher rates to customers.
Savers can now secure a rate of 4.31pc on their money, following the launch of a new best-buy one-year fixed bond from Charter Savings Bank.
If banks don’t need deposits, if they don’t, in fact, have to back up their loans with deposits, then why the fuck are banks paying people who deposit with them?
You willing to pay 4.31% for money you don’t need or use? So why are the greedy capitalists doing so?