Commentary
If you’re looking for advice about how to make a profit or a capital gain, then my apologies for the clickbait: this post is about how money itself is created.
This should be common knowledge: capitalist economies are inherently monetary, and you’d think that, after a few centuries of capitalism, we’d understand how money is created. But there are few topics about which there are more myths, and more false answers, than this fundamental question.
In fact, there’s an easy way to understand how money is created—though “easy” means “easy, once you understand double entry bookkeeping”. I’ll elaborate below, but the “TL;DR” takeaway is that any operation which increases the assets of the banking sector creates money….