Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
According to some "red pill" internet films (like "Zetigeist Addendum"), money is creayted as debt.

The problem is that you don't need a "red pill" film to show this and doing so detracts credibility from the critique because it makes it sound like it comes from conspiracy nuts.

It's called Fractional-reserve banking

The process of fractional-reserve banking has a cumulative effect of money creation by banks. In short, there are two types of money in a fractional-reserve banking system:
  • central bank money (money created by the central bank regardless of its form (banknotes, coins and electronic money loaned to commercial banks))
  • commercial bank money (money created through loans in the banking system) - sometimes referred to as chequebook money[9]
When a loan is funded with central bank money, new commercial bank money is created. As a loan is paid back, the commercial bank money disappears from existence.
(my emphasis)

This is standard monetary practice. If it's a conspiracy or a scam, it's hidden in plain sight.

Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith

by Migeru (migeru at eurotrib dot com) on Wed Dec 17th, 2008 at 05:28:12 AM EST
[ Parent ]

Others have rated this comment as follows:


Top Diaries

Herd Immunity .. Filling the Gaps

by Oui - Jul 24

LQD - Long Term Covid: The Brain

by ATinNM - Jul 13

Say No to Racism

by Oui - Jul 12

England surrenders to Covid

by IdiotSavant - Jul 9

Occasional Series