Daniel Lakeland

@neonsnake
Banks absolutely create money when they lend... its so obvious that its kinda crazy that even banks dont know what theyre up to.

The first thing you need to do to understand this is define money. M2 works pretty well, basically thats the sum of checking, savings, and all cash in the hands of citizens (not bank vaults).

Next, when a bank lends you $1000 they put it where? into your checking account right?
@violetmadder @CorvidCrone @KevinCarson1 @C4SS

Mar 18 at 6:05amWeb
Show threadDaniel LakelandMar 18

@neonsnake
And noone else's checking account goes down. They dont decrease my account to lend to you, that'd be completely illegal. so, the total money went up! end of story. that banks dont understand this is totally WILD. But its also kind of intentionally obfuscated.

(note that if a bank sells you a CD the total money goes down, and if you buy a treasury bond the same, or pay taxes... those destroy money.
@violetmadder @CorvidCrone @KevinCarson1 @C4SS