Mutageno on Nostr: Most money is created by banks. When a bank makes a loan it does an accounting trick ...

Most money is created by banks. When a bank makes a loan it does an accounting trick where the money is inside the banking system! (i.e. not given as a pile of cash/gold)

Private credit is all mortgages, credit card debt, auto loans, etc. All with high interest rate. All impacting demand.

Government over spending creates a debt to be repaid (e.g. Treasuries). This is much smaller than private credit and has much lower rates.

https://www.youtube.com/watch?v=3N7oD5zrBnc