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It seems that you have misunderstood how banks create money through credit. Even if there was absolutely no requirement to keep a certain amount of cash, banks
by baobabKoodaa 5y ago
It seems that you have misunderstood how banks create money through credit. Even if there was absolutely no requirement to keep a certain amount of cash, banks still couldn't create infinite money out of thin air, because that's not how it works. I wrote more about this here: https://www.attejuvonen.fi/money-out-of-thin-air/ https://www.attejuvonen.fi/money-out-of-thin-air/
- toyg 5y agoIt seems that you have misunderestood what my comment says, possibly in order to shoehorn a link to your blog. Please point out where I say that banks can "create infinite money out of thin air". I said they do the minimum that is necessary for them to be allowed to create money, which is what they exist for in the fractional-reserve system. Nobody else can emit the level of credit that banks can without getting shut down by the government.