Quote from: johnyj on February 11, 2015, 01:25:32 PM

Quote from: twiifm on February 09, 2015, 09:14:08 PM

Quote from: johnyj on February 09, 2015, 09:32:55 AM

Quote from: twiifm on February 09, 2015, 02:33:13 AM

If you've discovered this secret why aren't you out there rasing venture capital to start a bank?

This is not a secret, John Law practiced this 300 years ago. Commercial bank do not have right to create money, only central banks can. Just look how FED and other central banks' balance sheet exploded while they acquire large amount of assets since 2008

Oh yes they do, Commercial banks create credit money.

http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf

So what if their balance sheet expanded? Still has nothing to do with them "buying the economy"

Commercial bank create large amount of checkbook numbers in their database, but they are not real money, when they run out of real money, they went down, together with your numbers in your accounts, which has never existed in reality until you do a full withdraw. Just like your bitcoin count on bitcoin exchanges, they are numbers in a database, not on blockchain

Of course it's real money. The entire global economy is built on this.

They can't run out of money if they create it ex nihilo. They can only run out of borrowers