[jaekash]

> Because all credit is also money creation! (Broad money). Anyone with a pen can create money by writing an IOU. This is one of the things the goldbugs don't seem to understand properly.

I cannot do fractional reserve banking. And if I can't do that then I can't really create money. A bank can have a fraction of the real hard currency that others can spend in "reserve" (physical or electronic). I cannot do that, I cannot borrow you $50 and some other guy $50 if I only had $50.

So I dunno, depends on what you mean by money creation, but writing an IOU is different from what money creation is in the sense that most people mean. It is closer to issuing a bond, which is not really money creation.

[fragmede]

If I have $50 and I use my credit card, and send $50 each to my very trusted friends A, B, and C via, say, Venmo, is that not fractional reserve banking, built on top of my credit with my bank? I've not independently created any money since this only works because of my bank's credit to me, but I've still created $100, no?

[jaekash]

Well yes, your bank did create the credit, at your request, and the money they created went to you which you gave to others. So you were instrumental in the process, but without the bank that can do fractional reserve banking none of this would be possible.