Through what is called the pyramiding of reserves, uncovered money substitutes can and are literally created out of thin air by private banks.

FORBES: Bernanke tells Jacksonville University students QE is not inflationary

To repeat, nothing supercharges a money supply more than a banking system willing to create money by pyramiding loans, investments and deposits on top of its excess reserves.

FORBES: Connect

No, it appears this acceleration is slowly, though increasingly about private banks actively creating money, more precisely uncovered money substitutes, by pyramiding loans and investments on top of their massive reserve base.

FORBES: Headline Monetary Aggregates for September

As we have discussed in the past, nothing supercharges a money supply more than a banking industry willing to create money by pyramiding loans, securities and deposits on top of its reserves.

FORBES: QE II is here, Its impact on the money supply

As we have discussed several times in this space, nothing supercharges a money supply more than a banking system willing to create money by pyramiding loans, investments and deposits on top of its excess reserves.

FORBES: Monetary Watch December 2010: The Money Supply, a triple from here?