Do Banks REALLY Create Money? - Professor of Economics Explains

Economist Danielle DiMartino Booth sits down with Professor. In this clip they talk about how banks create money.

About the guest: Richard Andreas Werner is a German banking and development economist who is a university professor at De Montfort University.

About the host: Danielle DiMartino Booth is a Founder & CEO of Quill Intelligence, DiMartino Booth set out to launch a ResearchRevolution, redefining how markets intelligence is conceived and delivered. To build QI, she brought together a core team of investing veterans to analyze the trends and provide critical analysis on what is driving the markets – both in the United States and globally. A global thought leader on monetary policy, economics and finance, DiMartino Booth founded Quill Intelligence in 2018. She is the author of FED UP: An Insider’s Take on Why the Federal Reserve is Bad for America (Portfolio, Feb 2017), has a column on Bloomberg View, is a business speaker, and a commentator frequently featured on CNBC, Bloomberg, Fox News, Fox Business News, BNN Bloomberg, Yahoo Finance and other major media outlets.

#ValuetainmentShortclips

[wadesuhr]

There was a 4 hour documentary made in the 1990s uploaded to YouTube called "The Money Masters" by Bill Still. Not sure if that is still on YouTube or not. I actually watched it from BitTorrent back in the early 2000s.

[pure_thery]

While I don’t agree with everything Werner says politically, or even on monetary macro in general, on this point he is 100% correct and has done a great service in dispelling the intermediary/fractional reserve myths. Gotta give credit (ex nihilo😉) where it’s due

[gordonwilson]

The Bank of England admits that its reserves are created in reaction to commercial bank “lending.”
It also admits there is no limit except commercial considerations to the amount of money (as bank credit) a bank can “lend” out.
The Bank of England Quarterly Bulletins make for very interesting reading, especially the Q1 2014 articles on money creation “in the modern economy.”

[gordonwilson]

The Bank of England admits that its reserves are created in reaction to commercial bank “lending.”
It also admits there is no limit except commercial considerations to the amount of money (as bank credit) a bank can “lend” out.

[investorbettor]

He’s talking facts.

“Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve”

[dmustakasjr]

Wow.. so I am curious. Where (if at all) do banks end up paying any taxes?

[gordonwilson]

In theory commercial banks do not print money but if you get a loan from a bank (or overdraft) and your account is credited therefore you can remove it as cash from a teller or cash machine.

[gordonwilson]

In theory repayment of a loan cancels out that created loan money (bank credit).
BUT the money to repay the loan was also created the same way somewhere else as debt therefore debt must increase.
If interest is involved this is definitely NOT a force for good but for ill.
Which is where we are.

[amilaperera]

Clearly explained. Must stop this money creation.

[chalsfo]

Surely counter fitters create some degree of the money supply

[kastlerock]

Pretty sure at least here in the US they can create up to 9x the original loan amount. Read Creature from Jekyll Island.

[md.miranshahchowdhury]

Banks can never create new money but circulate money out of the central bank issued money(Velocity of money

[mjsmcd]

Loans created out of borrowers promisory note not nothing

[VivaSaludableconMarla]

From legal perspective it’s unconstitutional what is going on

[VivaSaludableconMarla]

I hope the courts step in and help stop this

[willobrien]

And all Prof Richard Werner needs is a few million to set up a local bank to help SME's invest in expansion create jobs and repay the loan.
Perhaps Richard needs to dress up as QE man and invite Rishi to the launch party.
Stranger things appear to have happened 🥳

[samnewman]

looks like joe rogan in the thumb nail

[josbtheonlinebartender]

You see The United States Treasury Department is supposed to go Wild Crush Diamond Trips every couple of days if possible. WTFK is the Hold Up? Please do not bring out excuses...

[adrianblaze]

No. Banks create currency, not money; They`re actually eroding money.

[dip-collector]

So you feel u found out something new? Huh and ur a professor? 😂🤣😂🤣 For people who really want to know how the banking system works, I suggest Mike Maloney - the hidden secrets of money. Right here on YouTube