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Except that they do... That's how banks make money. With interest. They lend it as mortgage or as T-bills lending it to the government. Just look at the balanc
by frankreyes 4y ago
Except that they do... That's how banks make money. With interest. They lend it as mortgage or as T-bills lending it to the government.
Just look at the balance sheet of SVB
- spiralx 4y agoYou're talking about buying bonds as "lending to the government" which is a pretty odd way to describe it, but it still isn't the bank lending to clients, which creates new deposits and a matching loan asset. https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...