Banks don't have that limitation for creating credit/money [1]. Technically, they just need to extend the balance sheet. Limitations are rather that they need t

Banks don't have that limitation for creating credit/money [1]. Technically, they just need to extend the balance sheet. Limitations are rather that they need to find good projects that yield enough returns to cover the interest rate. I think this is yet another good example of thinking with double entry bookkeeping. [1] https://www.investopedia.com/articles/investing/022416/why-banks-dont-need-your-money-make-loans.asp https://www.investopedia.com/articles/investing/022416/why-b...