3 ms·
I don't think it's a better comparison when it comes to how much money is "printed". That's M1, not M2. Fractional reserve banking don't print money, it increas
by incrudible 6y ago
I don't think it's a better comparison when it comes to how much money is "printed". That's M1, not M2. Fractional reserve banking don't print money, it increases (and decreases) the money supply through lending.
Despite perhaps not being backed properly, Tether is not supposed to be fractional reserve, nor is Tether created through debt.
- qeternity 6y ago> Fractional reserve banking don't print money, it increases (and decreases) the money supply through lending. Technically the Fed does the same. They lend money to the Treasury by buying Treasuries (or more recently, to other people by buying IG credit). When the Fed prints money, in theory it’s offset by a liability somewhere. They are the same. M2 is what matters.