27 Sep 2018 9:39 am
Banks don't create IOU's. They receive them from John Doe, and enter them as a credit on the books.indago » 27 Sep 2018 7:26 am » wrote:Nevertheless, it IS an interesting read...Cedar » 27 Sep 2018 7:06 am » wrote:Boy, you’re a bit of a long winded **** ain’t ya.peepee » 27 Sep 2018 6:51 am » wrote: In other words, everything we know is not just wrong – it's backwards. When banks make loans, they create money. This is because money is really just an IOU. The role of the central bank is to preside over a legal order that effectively grants banks the exclusive right to create IOUs of a certain kind
That is the money creation in the first instance. People and or businesses which borrow money, they
create money in the first instance.
This is one form of money creation.
PeeWee is a monetary ignoramus.