[WalterBright]

BTW, this will blow your mind. Let's say you have $300 in your bank checking account. You borrow $1000 from the bank. You bank checking account now has a balance of $1300.

Where did the thousand bucks come from? Where was it moved from?

Nowhere!

The bank just changed the amount in the electronic ledger from 300 to 1300.

Crazy, right?

[webXL]

Yes, crazy, but not exactly "nowhere". It "comes from" future earnings and the (projected) demand for US military protection and access to the markets which it enables. The bank (really the government) is helping you shift future consumption to the present, because you didn't save enough in the past. And why should you or anyone else be held personally accountable for not saving in the past? /s Because the US and its allies have god-like firepower, baby!

My mind was actually blown recently learning that fractional reserve banking has turned into a widely believed myth. Banks are still making low-interest loans and there's no reserve requirement!