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What private corporations create money?

Craig Stewart

in Student Loans

1 answer

1 answer

Daniel King on May 21, 2018

Private banks, financial institutions and other financial institutions can only increase circulation, not you can create money because they can't add a credit without accounting for a debit as they did for centuries under the goldsmith theory of banking. Today only the Fed can credit without debiting and they can only do so under the authorization of Congress who give them your authorization, in large blocks, such as the $ 2 billion authorized in 2008 to early 2009 to support the fragile banking system.. Despite the fact that many are the times that the formal trigger of the process, the Treasury cannot create money, either because they can not debit or credit the account of anyone. They can only request (by check) debiting and crediting such as you and I.. But that is old theory. This crisis has taught us that the Treasury, under the authority of the Congress, the printing of the bonds of the treasury, give to the bankruptcy of the banks, and all of this without debit or credit any bank deposit. Since the sum of a bank's net equity balance, which is the creation of money. .

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