[neilwilson]

It’s no different from money. It just has a longer duration.

Overnight money is repaid every day and replaced with a new loan for the following day. That also happens with so called “debt”.

Money and debt are fundamentally the same thing. They are issued by the same entity which has the same lifespan. Necessarily the debt can never be “paid off”. All that happens is the assets are swapped around.

Lending happens automatically as a function of accounting for a payment journal. The only people who get excited about it are those who are hard of accounting.

Money is debt. Time to accept that.

[chii]

Never denied that money and debt are the same. I am denying that printed money is the same as debt money.

[kelipso]

You are talking about printed money as in real world coins and paper/cloth cash? That's just not relevant at all in this age.

[chii]

no, i'm not talking about physically printed money. I'm talking about generating money not via debt, but via "wishing" it into existance.

Banks generate money via debt. This is OK. If the treasury starts printing money - like what Zimbabwe or Venezuela did (or the Weimar Republic[1] pre-WW2) - then you will get rampant inflation.

[1] https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_R...