alt Hacker News> The existence of credit itself is what causes monetary instability, and without credit the world would look very different.
Indeed. Credit is money; ultimately anyone can expand the money supply with an IOU.
> The existence of credit itself is what causes monetary instability, and without credit the world would look very different.
Indeed. Credit is money; ultimately anyone can expand the money supply with an IOU.
Money is destroyed when a loan is paid back. Private credit does not expand the monetary supply permanently. Only the state can increase the money supply.