Bernard Lietaer Quote – Money is created when banks …
Bernard Lietaer | (0)
Money is created when banks lend it into existence. When a bank provides you with a $100,000 mortgage, it creates only the principal, which you spend and which then circulates in the economy. The bank expects you to pay back $200,000 over the next 20 years, but it doesn't create the second $100,000 - the interest. Instead, the bank sends you out into the tough world to battle against everybody else to bring back the second $100,000.
All the banks are doing the same thing when they lend money into existence. That is why the decisions made by central banks, like ...