“How banks create money [out of thin air]”
Best macro economics video you will watch today.
Discussion
TLDW, if you deposit $1,000 in a bank in your own account, the bank can loan most of it out. It varies between places but around 90%. So they loan $900 to someone.
So someone is walking on the street with $900 in their pockets. But the $1,000 is still yours. So, $900 were just magically created!
🤯