Steve_American wrote:I have posted the link twice, you can google it.
Wow that's kind of you. I can Google your evidence for you.
Besides, I am aware banks can create money from nothing. We have talked about that in great deal on PoFo numerous times. However banks do depend on a fractional reserve in order to protect against their liabilities and as such you maybe able to create money to lend but really you need to back that up somehow. When they don't or worse their assets turn toxic, banks go bust. I am assuming you have heard of Barings Bank? You are American so perhaps not. So perhaps I will just tell you Banks continue to go bust today in America despite QE since 2008 and explain to you again that MMT is more than just a money tree but a mechanism to circulate the economy that requires taxation in any case.