3 comments

[ 2.7 ms ] story [ 16.5 ms ] thread
Money is not created, money is printed. Goods are created.
"The subject of my speech is the creation of money in our economy" - he then literally talks about it being created by the act of issuing loans which are credited to individual bank accounts - most money that is created is not physically printed.
And this supposedly "created" money is not backed by any thing of value, so it's akin to a number printed on a sheet of paper, unlike a chair that gets created from planks of wood. You can "create" as much such money as you like, limited only by artificial rules you set yourself (with "you" being a government, because government has the monopoly on issuing money). It really doesn't matter whether it was actually printed on paper or just recorded electronically, it behaves just the same.