Terminology Terminators!

When discussing private money creation, it’s always good to have a source at hand that people are unlikely to question: “Banks create new money by granting loans.” – The Swiss National Bank (SNB)

A newer, more prominently placed entry at snb.ch says “banks can create book money, by granting loans.”*

For more quotes on the topic, see “Do banks really create money?”

This is the updated, tighter version of an unwieldy old post full of implications we couldn’t prove. The simple fact: that newer entry didn’t even appear until people started asking “stupid” questions.

Learn from the past, live in the present, care about the future!

* Book money is the money in your bank account, it isn’t legal tender, and yet we pay our taxes with it. What’s wrong with this picture?

pic: spoonfedtruth.ucoz.com

This post was brought to you by bnb blog – the blog of “Banks need Boundaries!”

Banks need Boundaries! …
…is a group of European money-reform activists,…
…launched several petitions in different languages…
…enjoys collecting ideas and providing resources (for YOUR petition?)

and …

…is a member of the International Movement for Monetary Reform (IMMR)