When a commercial bank issues a loan, it doesn’t lend out existing deposits. It types the loan amount into the borrower’s account, creating a new asset (the loan) and a new liability (the deposit) at the same time. The Bank of England confirmed this in its 2014 paper Money creation in the modern...

Your question brings to mind a striking parallel. Why do people refuse to believe in God despite the evidence? Because belief is a choice, not a consequence of the facts. It’s the same with money, but in reverse: the evidence is there, and yet they choose to believe it. Money creation by banks is...

https://cdn.mises.org/The%20Theory%20of%20Money%20and%20Credit_3.pdf

Most people think banks lend out existing money. They don’t. When commercial banks issue loans, they create new digital money through accounting entries. New debt = new money. That money is “real” because society accepts it for payments, salaries, and taxes. Critics call the system immoral...

Banks create money by typing two ledger entries. A loan asset and a deposit liability appear at the same instant. Nothing was transferred from a saver. The Bank of England admitted this in 2014. Roughly four fifths of dollars in circulation were spoken into existence this way. It spends like money. ...

Bank money : Money created by permission and debt Bitcoin : Money created by rules and scarcity

Fractional reserve banking The bank is legally required to keep only a small fraction of our deposits (the reserve) and can lend out the rest. This creates an expanding supply, also known as the money multiplier. For me, it's not money; it's just credit. It is definitely immoral and dishonest fo...

Banks don’t create money they create tokens. Money is the method that we use in our minds to find the value of something, it is not a currency nor a token. What banks do is immoral because it’s usury and theft and it supports the enslaving system that we all live under. Most people don’t see...

Yes. ✔️

How Banks “Create Money” - Commercial bank lending: When a bank issues a loan, it doesn’t hand out pre-existing deposits. Instead, it creates a deposit out of thin air in your account. That new balance is spendable — it looks and acts like money. - Balance sheet trick: On the bank’s books,...

How do commercial banks create money? Is it even money? Commercial banks create money through fractional-reserve banking. When a bank makes a loan, it doesn't hand over existing cash; it simply credits the borrower's account with a new deposit. This is "book money," or credit. Although it functions ...

Lately I am beginning to think that many people are incapable of understanding it. They are apathetic to the root cause of their misery. There is a reason that these things are not taught in the K-12 education system. No one questions why.

1. How do commercial banks "create money"? Commercial banks create money through a system known as fractional reserve banking. Contrary to popular belief, money doesn't just come from a government printing press; it is born out of the act of lending. The Process: When you deposit $1,000, the bank do...

How do commercial banks “create money”? They do not lend existing savings. They create new deposits out of nothing. A 100 deposit lets the bank lend 90 (or more), so total “money” rises to 190 while reserves stay the same. Is it money? No, in reality it is credit—new debt created by the...

1) *click* 2) no 3) see 1 and 2 4) *scroll scroll*

My answer is : commercial banks and most people are FAKE and GAYYYYYYY

welp, i’ll take a stab at it… when a bank gives you a mortgage, it doesn't pull that from existing deposits. it types a number into your account. liability on their books, spending power in yours. functionally, it is real money but.. philosophically i beg to differ banks earn interest on mone...

Most people think banks lend out money that already exists. They don’t. Commercial banks create new money the moment they issue a loan. You sign a mortgage for $300k & the bank types “$300k” into your account the new purchasing power appears instantly. That money did not come from a save...

They tap some buttons on a computer. If the people you want to trade with will accept it, it's money. It's immoral because 99.999% of people have to work for it while a small group of men can simply print it. This has downstream effects like war, poor health, infertility, etc. most people are overwh...

You ask for a loan. Banker hits enter and brand new money appears from nothing. It's money. Immoral? Smoothest theft in history. Most don't get it 'cause the con needs you clueless. nostr:nprofile1qy2hwumn8ghj7mn0wd68ytnnv4erztnwv46z7qghwaehxw309acxz7fjxyhxummnw3erztnrdakj7qpqf4q60j7fklm7sjzdz4ye42...

Commercial banks “create money” when they make loans. They don't print banknotes: they simply create new digital deposits in a bank account. That money did not exist before the credit. Yes, it is money, because society accepts it to pay, save and buy. But it's also debt: Your account balance is...

Let’s see if I get this right. How do commercial banks “create money”? A customer requests a loan from the bank. The process of giving the loan creates the money. Is it money? No, it is a debt obligation. Money is destroyed when borrowers pay back their loans. Why is it inmoral? Money...

Commercial banks don’t create it, but State run banks do. They justify it by making the people happy. If the people are happy, the State creates more.

Here’s my synthesis of nostr:nprofile1qqsyx708d0a8d2qt3ku75avjz8vshvlx0v3q97ygpnz0tllzqegxrtgpz3mhxue69uhhyetvv9ujumn0wd68ytnzvuq3camnwvaz7tmwdaehgu3wvf5hgcm0d9hx2u3wwdhkx6tpds9qgjsg from the beginning of my Bitcoin journey lol: Everything in a civilization is downstream of money. Money is one h...

Its through fractional reserve banking. As i understand it, effectivly a bank can lend the same dollar out multiple times by treating the debt of others as an asset that they can then loan out again. Say you have a dollar and you deposit it with the bank. The bank treats your deposited dollar as t...

1. How do commercial banks “create money”? Is it money? Yes, they are money, and literally, they are based of government's debts/loans; the more trustworthy seemed government, the more money central bank can print (without uncontrolled inflation, - while fair market's interest rate is comparable...

Sry for being late! ✌️ Most of us grew up thinking banks are just giant piggy banks. You deposit your paycheck, they hold it in a vault, and maybe lend a piece of it to your neighbor for a mortgage. That's a lie. Banks don't lend out existing money. When you go to a bank for a loan, they don...