GhostOnTheHalfShell OP ,
@GhostOnTheHalfShell@masto.ai avatar

@economics-that-works

Bank lending increases a borrower's bank account and also obligates them with debt+interest in unequal measure.

"Every company uses double-entry bookkeeping. What is special about how banks use it is that it’s how they create money. If a bank lends you say £1 million, they add that number £1 million to your Deposit account, and they record that you owe them £1 million at the same time.."

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