Monday, January 13, 2014
printing money?
The government really doesn’t “print
money” in any meaningful sense. Most of the money in our monetary
system exists because banks created it through the loan creation
process. The only money the government really creates is due to the
process of notes and coin creation. These forms of money, however,
exist to facilitate the use of bank accounts. That is, they’re not
issued directly to consumers, but rather are distributed through the
banking system as bank customers need these forms of money. The entire
concept of the government “printing money” is generally a misportrayal
by the mainstream media.
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