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Your company will need some kind of collateral or a cashflow in order for the bank to extend credit. When you file bankruptcy, the assets are auctioned the ban
by mohanmcgeek 5y ago
Your company will need some kind of collateral or a cashflow in order for the bank to extend credit.
When you file bankruptcy, the assets are auctioned the bank gets back some of that money, if not the whole 100k
You created money when borrowed the 100k. The rest of it doesn't matter.
It's the case with the government and the central bank too. Money is created when the government borrows money from the bank by issuing bonds. The idea of government "printing" money is plain wrong.
(except in a physical sense when the mints print your currency notes)