Quotes About Credit creation

A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank.

The modern banking system manufactures money out of nothing.

When banks extend loans to their customers, they create money by crediting their customers' accounts.

I always wonder how banks manage to go bankrupt at all considering they can just make up the money, and especially, what is stopping them from lending money to themselves.

A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank.

If you've taken Econ 101, you know that the quantity of money rises only when the banking system makes a net loan.

The Federal Reserve is a fount of credit, not of capital.

Credit is a promise to deliver money. It will produce GDP but you'll create credit... So you reach a certain point that that you can't do that anymore... There are choices. And how do we best support, apportion the money? How much is going to be transferred?