I 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 repres

I 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.