Thanks for the reply, I actually understand way better where you're coming from now. Wray's piece threw me a bit, but I can see what you're objecting to. Appa

Thanks for the reply, I actually understand way better where you're coming from now. Wray's piece threw me a bit, but I can see what you're objecting to. Apparently I got lucky with my basic econ education and didn't get these ideas pushed too strongly. I didn't actually know "intermediaries re-lending deposits" was taught as anything more than a way to explain banks to children. The reserve requirement theory I did learn, and had never seen deconstructed clearly. I knew that the reserve rate didn't determine money supply, but realizing that central banks offered reserve loans clears up why it's not a problem. Very simply, it looks like I underestimated how badly this is often taught. All of which is to say, it appears we do agree. Inflation and the consequences of negative interest rates are the only problems with ongoing money creation. I have mixed reactions to MMT, but I'm absolutely disdainful of "erase the debt now!" fear-mongering. With still-minimal inflation and foreign bond interest paying more than American debt costs, there's really no cause for concern.