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A comment on 40% of US dollars in existence were printed in the last 12 months. Parent comment

Re:40% of US dollars in existence were printed in the last 1... by shoto_io on Sunday October 10, 2021 @11:10AM (#28819002)
Ok, and how do banks get the money in the first place?
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Re:40% of US dollars in existence were printed in the last 1... by dragonwriter on Sunday October 10, 2021 @11:27AM (#28819126)
> Ok, and how do Banks get the money in the first place?

They create it from the air.

They note the debt on one side and the balance on the other when they issue a loan.

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Re:40% of US dollars in existence were printed in the last 1... by shoto_io on Sunday October 10, 2021 @11:36AM (#28819204)
And how is the central bank involved in this?
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Re:40% of US dollars in existence were printed in the last 1... by dragonwriter on Sunday October 10, 2021 @12:09PM (#28819528)
> And how is the central bank involved in this?

Via reserve requirements and coordinating interbank lending:

https://www.investopedia.com/terms/i/interbankrate.asp

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Re:40% of US dollars in existence were printed in the last 1... by nradov on Sunday October 10, 2021 @11:52AM (#28819345)
The central bank provides liquidity to member banks in case of a bank run, and imposes limits on money creation (lending) based on capital reserves and other factors.
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