Comment by benenrjdnz
2 hours ago
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.
2 hours ago
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.
You are neglecting interest paid. It doesn't matter who issues the credit - the Medici family or the US Federal Reserve.