How money is created, or "printed".

[wheatking16]

How money is created, or "printed".

It is not how you think.

The prevailing narrative is not accurate.

The summary from the link below:

"We can see, then, that in a modern economy money is created primarily through commercial bank lending and secondarily, through Bank of Canada loans directly to the government. While money-creation by the Bank of Canada tends to be deliberate and calculated, money-creation by private banks is much more dependent on the current state of the economy. Since it is the establishment of new bank loans that create most of money, the overall money stock is predominantly determined by the willingness of both commercial banks to make loans and the private sector to take on debt. Understandably, such willingness to both borrow and lend tends to fluctuate significantly alongside the cyclical nature of a modern economic society."


[url]https://www.canadianmoneysaver.ca/articles/3537?utm_source=perplexity[/url]

[biglentil]

That may be the mainstream narrative but in reality it's just not true. The Bank of Canada received special "crown Corp" status under p. Trudeau allowing for undisclosed private shareholders to control the fiat currency creation of Canada. If you or I were to print dollars it would be called counterfeiting and we would be thrown in jail they do it with impunity and charge interest.

The government of Canada prints bonds with interest payable the Bank of Canada purchases those bonds and currency is issued. It's an impossibility to pay the debt back to the Central Banks private interests because dollars only come into existance as debt with interest owing. That's not money that's a credit note in a debt based fiat system.

The currency is backed by nothing.