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The article is about how the "It's a Wonderful Life" George Baily model is not the reality of banking and money. It seems to be more about teaching what is real
by tocs3 3y ago
The article is about how the "It's a Wonderful Life" George Baily model is not the reality of banking and money. It seems to be more about teaching what is really going on and holding banks and government more accountable rather than new developing new concepts.
- galaxyLogic 3y agoI think the sum of it is: 1. Governments CAN "create money". They do, they create all the dollar-bills. The question is what those bills represent, they represent "I owe You"s. 2. Banks do NOT "create" money. They print out "I Owe You"s. They don't probably have the money you deposit into them, but they do owe it to you. This was good education for me at least, to think of it this way.