> I think you're just letting your imagination run wild on how things work and why that makes sense. If value were not being created fast enough, then people w

> I think you're just letting your imagination run wild on how things work and why that makes sense. If value were not being created fast enough, then people wouldn’t be able to payoff the loans. The loans are made either to enable value creation (business loans) or to fund a purchase and the loan taker agrees to funnel their value creation (salary) back into it. > No I can't. If I make a loan to myself, there is no new money to circulate. If a bank makes a loan on fractional reserves it is new money than can circulate and that can itself be the basis for new money creation. Obviously I meant to someone else. Though perhaps this one is too hand wavey to be useful