charlesbazlinton
Banks have a pivotal function in the
economy, they are the main creators of the money supply. In granting or
issuing so called 'loans' to their customers they create the money that
is essential to make the modern economy work. In fact says Prof
Werner: 'there is no such thing as a bank loan' he says what happens is
credit creation, when banks make the money (credit ) needed out of
nothing.
He explains how the system works, whereby, from a miniscule deposit of funds a huge amount of money is created.
He explains how the system works, whereby, from a miniscule deposit of funds a huge amount of money is created.
