Reply #43: Out of thin air?? [View All]

[FormerOstrich]

I'm having trouble with that theory/premise.

I assume our discussion is limited to US Banks and US currency (money) as both can have different definitions outside of the US.

Money is a medium of exchange. A pure barter system depends on one person possessing the exact goods/service that another wishes to posses, at a given point in time, plus willing to exchange those goods/services for something the other person posses.

Money functions as an intermediary because the timing of the above scenario restricts trade.

The ability to create and/or mint a medium of exchange marked for more units than its current value is the very basis of banking. However, that does not equate to creating money out of thin air.

Try substituting cows or food as your medium exchange. You cannot pluck them out thin air.

Your statement that money is debt is very mis-leading without clarifying whose debt and how that is so.

Your wee observations to illuminate the ignorant certainly fall short of containing any educational value. If nothing else, they would seem only to serve as a way to make you feel superior.