The MMT Podcast with Patricia Pino & Christian Reilly cover image

#126 Dirk Ehnts: How Banks Create Money

The MMT Podcast with Patricia Pino & Christian Reilly

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IOUs Are Not Money, It's Just Paper

Deposits in the account of the government are not money, a tax credit. Just as a cinema ticket only emerges when owned by some one else. If you don't put any majority on it, it cannot be worth anything. There's no way that you can run out of money in the uro zone. Before germany goes down in an economic crisis, other economies will go down. You always have to be a safe haven, only relative to the other countries. And this means that for countries like germany, i mean, yes, on paper, they lost the sovereignty,. and they can runOut of currency if the bon market s buying their bonds.

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