Comments by "andrew lines" (@andielines) on "How banks create money" video.

  1. Yes I accept what you say Mr Murphy. But under this process with all money being created as debt, where does the money to pay the interest on that debt come from? Clearly the profit (interest) is why banks bother with loans in the first place.
    4
  2. Could someone explain why the government that is generally assumed to be the creator and controller of 'money' has to borrow money from 'the banks' with interest. I really need to be convinced this is not just a scam, in language the public can easily understand.
    1
  3.  @maria8809ttt  So lets try to be clear and simple. If '97% of the money in circulation is created as debt' as is often stated, then that's an awful lot of interest, so does this just get sucked out of the other 3% of the money created by government? Or where else does it come from in the big scheme of things when 'eventually all the debt is repaid'.
    1
  4.  @peterscott6818  So lets try to be clear and simple. If '97% of the money in circulation is created as debt' as is often stated, then that's an awful lot of interest, so does this just get sucked out of the other 3% of the money created by government? Or where else does it come from in the big scheme of things when 'eventually all the debt is repaid'.
    1
  5.  @curryattack8985  Quite obviously that is not the case.
    1
  6.  @ef7480  But clearly that cant be so, because either the overall debt would spiral out of control and the system would eventually collapse, or a part of the 'economy' would be left with a huge deficit. Which at the moment appears to be about £2.6T.
    1
  7.  @ProgressiveEconomicsSupporter  So the shortcomings of a spurious system that benefits only the banks, shifts its costs onto the public, is that what you are saying?
    1
  8.  @peterscott6818  yes, but where does that 'money' come from in a broader sense. If all money is created as debt with interest? Logically and literally, it doesnt AND CANT add up.
    1
  9.  @stephfoxwell4620  There is no working fractional reserve, if there ever was.
    1
  10. There is no fractional reserve.
    1
  11.  @perkinscrane  There is no working fractional reserve system in the UK. There are capital requirements for banks but that's not the same thing.
    1
  12.  @perkinscrane  It doesnt form part of any multiplier.
    1
  13.  @perkinscrane  If you say so. But there is still no working fractional reserve system in this country. Which was my initial point.
    1
  14.  @perkinscrane  you are well aware of its relevance, but I've said enough, I'm not playing your games any more.
    1