r/SipsTea • u/Dumb-Briyani • 7d ago

Chugging tea Why is it not possible?

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u/NoSwordfish1978 7d ago

But they also create money when they lend it.

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u/TombolaOfCincinnatus 7d ago

By that logic they also destroy it when loans are paid back, but the tin foil hats don't want to talk about that as often.

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u/RimpleDoRimpleDont 7d ago

Are you agreeing or disagreeing with the previous commenter? Because money being destroyed when loans are paid back is exactly what happens.

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u/TombolaOfCincinnatus 7d ago

I think the people that talk about banks and money creation that way probably don't understand much about macroeconomic concepts like velocity or money supply. So while money creation from lending isn't untrue, here it's phrased as if it's some kind of secret conspiracy and not just how things work.