thanks for sharing with everyone

thanks for sharing with everyone

thanks for sharing with everyone

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eso es genial seria bueno probar esa plataforma, gracias por compartir

thanks for sharing with everyone

thanks for sharing with everyone

thanks for sharing with everyone

thanks for sharing with everyone

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thanks for sharing with everyone

How do commercial banks create money? Is it even money? Commercial banks create money through fractional-reserve banking. When a bank makes a loan, it doesn't hand over existing cash; it simply credits the borrower's account with a new deposit. This is "book money," or credit. Although it functions as transaction money, it is technically a private liability (a promise to pay) and not base money like physical cash. Why is it immoral? It is considered immoral because it allows private institutions to create purchasing power out of thin air. This devalues ​​the currency through inflation, acting as a hidden tax on savers. Furthermore, it creates a system of debt bondage. Why don't most people understand it? The complexity is intentional. The banking system is shrouded in technical jargon that obscures its reality. As Henry Ford suggested, if people understood how the monetary system works, there would be a revolution before tomorrow. Most people assume that banks are simply intermediaries that lend out what others have saved.