He states that banks create new money through lending against deposits, which is the basis for explaining debt and inflation dynamics in this episode.
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Double Entry
He states that banks create new money through lending against deposits, which is the basis for explaining debt and inflation dynamics in this episode.
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Timestamped Evidence
"an illusion so the example is let's just say your depositor and you put a million dollars into a bank okay and the way..."
"do you guys know what you don't want to know why the bank has two million dollars this is the case okay i'll tell..."
"...have to keep track of these exchanges so the equation called double entry bookkeeping which is basically assets and liabilities okay and that's double..."
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