Too big to tell “Banks create money out of nothing”

Too big to tell "Banks create money out of nothing"

Hans Scharpf LL. M.
Lawyer in Frankfurt am Main since 1986
amongst others, member of the expert committee for real estates
area city of Frankfurt

Documentary, 94 min
director: Johanna Tschautscher

translation note: The english term “to take out a loan” suggests that somebody loans money from somebody else. In reality, e.g., banks create money whenever they credit a customer account. This new money is a credit, granted by the customer to the bank. This makes deposits a kind of bank debenture, a ‘liability’ from the bank to the person. So both sides, the customer and the bank, are granting credits to each other when a customer “takes out a loan” from the bank. “Real money” produced by a central bank, has rarely been given out. The german term “einen Kredit aufnehmen” fits better. In a free translation this would mean: “to take out a credit”.

Too big to tell “Banks create money out of nothing”

  • Schreibe einen Kommentar

    Deine E-Mail-Adresse wird nicht veröffentlicht.