Who Creates Your Money?

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Full transcript

You probably think you know where the money in your bank account came from — maybe you earned it, maybe someone paid you. But most of that money was never actually printed by the government. It was created digitally — by a bank. When a bank gives someone a loan, it doesn't hand over existing money. It simply creates a new deposit in the borrower's account — and that deposit is money. So your bank balance is really just a claim on the bank. But if banks create money — where does it actually come from?

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