OK, how does that gel with a report from S&P [1] that says:
“Banks lend by simultaneously creating a loan asset and a deposit liability on their balance sheet. That is why it is called credit “creation” – credit is created literally out of thin air (or with the stroke of a keyboard)”?
Also Prof Werner's analysis, he reaches the same conclusion.
“Banks lend by simultaneously creating a loan asset and a deposit liability on their balance sheet. That is why it is called credit “creation” – credit is created literally out of thin air (or with the stroke of a keyboard)”?
Also Prof Werner's analysis, he reaches the same conclusion.
[1] http://positivemoney.org/2013/08/repeat-after-me-banks-can-n...