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> Comes from the Federal Reserve, when they decided to increase the money supply. Wait, really? I was pretty convinced that the vast majority of new money is c
by Matumio 8y ago
> Comes from the Federal Reserve, when they decided to increase the money supply.
Wait, really? I was pretty convinced that the vast majority of new money is created by private banks, when they decide to loan out money that nobody has paid in. It's called fractional reserve banking.
- fjp 8y agoPrivate lending actually destroys money supply, contrary to the "money multiplier effect". (Fed recently admitted this was bullshit) that has been taught for a long time. Government/public lending creates money supply