Re:China lets yuan break 7-per-dollar level for first time i...
by benj111 on Monday August 05, 2019 @10:44AM
(#20614588)
That special power is literally the distinction between bank and central bank, and what this whole thread is about.
Central banks do have that special power, they can literally create money out of nothing. A normal bank can lend out a $, but they need to have taken a $ deposit, and it stays on the banks balance sheet.
Normal banks special powers are turning risky illiquid debt and making it appear risk free and liquid to depositors.
Central banks do have that special power, they can literally create money out of nothing. A normal bank can lend out a $, but they need to have taken a $ deposit, and it stays on the banks balance sheet.
Normal banks special powers are turning risky illiquid debt and making it appear risk free and liquid to depositors.