[kasey_junk]

Everyone has the power to create credit out of thin air.

What the banks have (now, due to long history) is a regularly regime where we expect the government to fix that credit when the bank gets those credit decisions wrong. In trade for that extraordinary treatment governments demand banks comply with a variety of regulations.

I’ve worked for a long time in the banking and credit space, no one I know in that industry thinks Andreeson did a credible job explaining modern banking. To knowledgeable people he came off as either fundamentally ignorant or extremely deceptive depending on your cynicism levels.

[selecsosi]

Thank you, this is something I think people really misunderstand about "money" in our system. Every time I create a "loan" for a family member I've technically created (i.e. debt) I've done the equivalent as to what a bank does to create "money". The question becomes if I can take the IOU I have from my brother, and trade that to another individual when I need to acquire goods.

The fact we have a mechanism to create trust in trading debut is about assigning and managing risk in the payment of that debt, and transferring/holding that risk over time, which is a separate aspect to the raw creation of money concern (managing total debt loads).