alt Hacker NewsMoney 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.
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IAmBroom • yesterday at 2:13 PM
You are neglecting interest paid. It doesn't matter who issues the credit - the Medici family or the US Federal Reserve.
Your understanding of monetary theory is somewhere between 110 and 5,000 years off. Furness had a pretty cogent explanation of a monetary system without central authority or functional currency about 100 years ago with the Yap. They even managed to have bouts of inflation without the concept of a bank or state.