Replying to Avatar ralphstriewski

The Fed enables and supports money printing by supporting fractional banking. By the reverse repo system it pays interest to the banks out of thin air. The backstop facility is printing money lending it to the banks to cover overvalued assets. The whole banking system is printing money!
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The ₿itcoin Artist 1y ago

Yeah, every cent exists as debt created by a balance sheet entry.

So I guess the question becomes, who's balance sheet are they originating from? and what are the interactions between them? (that's what you're describing right?)

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ralphstriewski 1y ago

basically they can create as many new monetary units in the system as they want in different ways. In the books the balance sheet always looks fine, but actually money is created out of thin air. A detailed description you can find in Lyn Aldens book "Broken Money"

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The ₿itcoin Artist 1y ago

yeah, I guess I have to read it some day to really understand it properly

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ralphstriewski 1y ago

Thank you!