Yeah, the money is real. Yeah the money has been created. But you can't start from there when explaining it to a sceptic. And there's still is one way the mone

Yeah, the money is real. Yeah the money has been created. But you can't start from there when explaining it to a sceptic. And there's still is one way the money isn't real: if everyone runs to the bank to retrieve their money they can't. Not all at the same time. But they never do, so the money is real. > This is false. FDIC is insurance. The money that is used to step in and rescue a bank is real money that comes from banks that pay insurance premiums to have their depositors' money insured. Oh, I see. A tad more complicated than I though, but the effect is the same, so my central point remains. --- My step dad used to work in banks, and you, he, and I agree on how this all works. Interestingly though he didn't want to see it as "creating" money. He didn't quite accept the connotation, and I suspect the full consequences of fractional reserve. His exact word was that banks are authorised to transform money (which I suspect is a legal term in France).