Zitteraal1982 on Nostr: Most people think banks lend out existing money. They don’t. When commercial banks ...

Most people think banks lend out existing money.

They don’t.

When commercial banks issue loans, they create new digital money through accounting entries. New debt = new money.

That money is “real” because society accepts it for payments, salaries, and taxes.

Critics call the system immoral because:

* private banks gain power to create purchasing power
* most money enters society as debt
* banks earn interest on money they created
* losses get socialized through bailouts

Most people don’t understand it because schools rarely teach how money is actually created — and the system is intentionally abstract.

“Money” today is mostly bank-created credit.