A simple explanation of how money moves around the banking system (2013)
Edit: Apologies for being slightly off topic here - this was meant more as a response to a comment elsewhere on money creation.I've been keenly interested in the subject of banks, debt, and money creation ever since I picked up a book on the subject of debt around 2006. I really appreciated having a (very faulty but nonetheless useful) mental model to apply when trying to make sense of subsequent events. I sometimes like to think that I saw the GFC coming, but was probably just primed to see how precarious our debt based financial system had become.With my local (NZ) housing market once again appearing to be on the brink of big changes (many are suggesting a crash), my interest has been piqued again. Looking about at what is out there that can help me make sense of what's going on I rediscovered a nice little interview (from our friends at RT no doubt) that I'd recommend to anyone trying to create their own mental model to help them understand the fascinating, frustrating, and confusing reality of banking.https://www.youtube.com/watch?v=EC0G7pY4wREOne of the interviewees is Richard Werner - the man who introduced the concept of quantitative easing during the Japanese Financial crisis in the 90s.