Someone should indeed tell

[ALB]

Someone should indeed tell the ECB !

European Central Bank wrote:

Commercial banks can also create so-called “inside” money, i.e. bank deposits – this happens every time they issue a new loan. (….). Inside money (….) is named this way because it is backed by private credit.https://www.ecb.europa.eu/explainers/tell-me-more/html/what_is_money.en.html

The whole ECB document is a good description how the modern monetary system works. In fact it is something we can, and should, quote (and quote again) against the "thin air" school of banking. "Private credit" of course includes outside deposits (i.e not those opened by a bank for those it makes a loan to, but people and organisations depositing their own money there) and what banks themselves borrow.I think I'll put it to Steve Keen since he claims the backing of German banks for his description of how the monetary system works (and since he teaches just down the road from me at Kingston University). Not that he's a "thin-airist". It''s just that his description is an open invitation for them to misinterpret him..