Banks create money, but it's less impressive than it sounds
This is a fantastic page. I just have an issue with one of his points though:> That banks do not have any special powers in relation to money creationThey most definitely do though: FDIC insured accounts have legal government backing—a random IOU from me can't achieve that, no matter how much anyone trusts me. Put another way, a bank deposit seems less like an "IOU" and more like a "WeOU"—"we (the bank or the government) owe you". That seems like quite a fundamental difference, no? It seems to distinguish "fake" and "real" money (or banks).