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Cake day: June 22nd, 2023

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  • I think the answers to the question are generally isaying it isn’t as simple as ‘creatijg money out of nothing’. They may be creating money but that money is backed against assets which they do own.

    because banks are government regulated and insured institutions, forced to back each loan with reserves, and regulated to have capital for each of those loans, they cannot really be said to make this private money out of nothing.