Haha we're back to this again? Thought experiment: if Central Bank suddenly stopped printing money, would the money supply still increase? Or would it remained capped?
Thats basically the argument we're having
Thats basically the argument we're having
Back to what? Now you seem to be trying to avoid cornering at all means. Banks that create money through credit are a Central Bank's proxies. And if the Central Bank would somehow want to stop for some fancy reason its currency from circulation, no bank would be able to create money in the form of this currency "out of the thin air". I think I made it pretty evident. Central Bank money printing is a metaphor, credit money is just another way of emitting money into circulation by a Central Bank through its proxies (though there are other ways as well).
You are only talking about commercial banking. Man why don't you read what I posted about shadow banking and see if you still come to the same conclusion. Otherwise just agree to disagree. Stick w your neoclassical view
Why do you send me somewhere to read something? Couldn't you explain your point yourself without outside references? Did I ever ask you in my posts to go read anything besides just my posts? I can explain in layman terms everything that I talk about since I understand what I write. Can you say the same about yourself?
Hmmn, I tried to explain it in layman's terms but you kept saying you don't get it. I thought something common like car finance you would understand but apparently not. There are non-commercial banks where credit money is being created. In fact before the 2008 GFC more money was from this shadow bank sector than commercial bank sector. Like other neoclassicals, you are missing half the picture. That's why their models don't work
So you are now just saying that I'm not capable of understanding you explanations. Okay then. But you only answered one half of my question, that is that bitcoins cannot be created by banks, but you failed to address the issue how they can create state-controlled fiat. I think you wouldn't deny that the credit money allegedly created by banks out of thin air is the same money that is issued by the state?