Governments all over the world are fuelled by money that they can print for free through the issuance of debt, along with the centralised technological powers that they possess. The debt they create are bonds and treasuries and gilts, etc. They merely raise their credit card boundaries by having the bank buy their debt. Where do these institutions get the funds to buy these debts, then? primarily from deposits made by individuals like you and me at our institutions.
In other words, if fewer bank deposits were kept by banks, fewer funds would be available to purchase government debt, which would reduce the amount of power that governments could exercise.
