The dynamics of money creation and destruction play a pivotal role in the economy.

When a loan is granted, new money is injected into circulation, stimulating economic activity. This expansion of the money supply can fuel investments, consumption, and growth.

On the flip side, when loans are repaid, money is effectively removed from circulation, acting as a mechanism to control inflation and maintain monetary stability.

This balance between creation and destruction helps regulate the overall money supply, influencing the health and functioning of the economy.

USA Government borrowing action is a de facto money creation QE even though the #FED is maintaining interest higher for longer.