Skip to main content

Posts

Showing posts from August, 2017

Germany Says Money Is Created Out Of Thin Air

I’m still in a state of shock after visiting the Money Museum, at the Bundesbank’s complex in Frankfurt. There are different exhibitions. A few of them are video displays, where a person, supposedly a Bundesbank's employee because they are in an office, explains basic concepts about different economic subjects, like the exchange rates or how money is created through “Book Money”. Book Money? I don’t know you but it’s the first time I read that term. In three different stages (each one you have to press a butto n ), they try to explain how money is created. I didn't tape it but I took a picture of the buttons:  1. BOOK MONEY AND LENDING : Basically they say money is created when the B ook M oney exits the bank through lending. 2. CREATING BOOK MONEY : This whole subject is simply to say that “the money the banks use for lending, unlike many people assume, doesn’t necessarily come from the deposits made by the customers”. So, it refutes the economic theory that sa