> The vast majority of money that is in the economy is created by banks with credit creation
That's the way it's described, but banks in this respect are only acting as agents of the government. They can only "create" money under rules prescribed by the government, and the government, through the Fed, controls how much of it they can create.
> The government, especially in the US, hasn't had a money printer for decades.
Whether I take this literally or metaphorically, it's false. Taken literally, the government does still print bills. Taken metaphorically, even apart from what is discussed above, the government, through the Fed, has done "quantitative easing" and other things that involve direct manipulation of the money supply, recently enough to make your claim false.
That's the way it's described, but banks in this respect are only acting as agents of the government. They can only "create" money under rules prescribed by the government, and the government, through the Fed, controls how much of it they can create.
> The government, especially in the US, hasn't had a money printer for decades.
Whether I take this literally or metaphorically, it's false. Taken literally, the government does still print bills. Taken metaphorically, even apart from what is discussed above, the government, through the Fed, has done "quantitative easing" and other things that involve direct manipulation of the money supply, recently enough to make your claim false.