[gusfoo]

> When a bank for instance in Denmark lends you 300.000USD it actually ads 300.000 to the economy out of no where.

No - it does not. You have completely misunderstood how money works. There are two entries in the ledger, not one. The credit of 30K and the liability of 30K which together cancel out. The only surplus comes from interest and fees.

[fennecfoxen]

No, he's actually right. Banks create money and it's totally a well-known recognized widely-accepted economic phenomenon, and it is trivial to look up the logic -- use Google.

The thing to criticize him on is the idea that the money is "not related" to the economy. If you borrow $300,000 USD, it's precisely because you plan to use that money to make a difference in the economy. Moreover, broad statistics are available on price stability, tracking the value of money against a value of a basket of goods like the "consumer price index". Most years the value of the dollar is stable to within 2%. If you actually want crazy uncorrelated money-creation in USD you'll have to go back to the 1980s.

[ThomPete]

Yeah I might have overstreched on that claim. What I meant to say is that it's increasingly uncorrelated.

[zo1]

He's referring to Fractional Reserve Banking, have a look at the wiki page for more info:

https://en.wikipedia.org/wiki/Fractional_reserve_banking

[ThomPete]

Sorry but I am not wrong at all. That is exactly how the system works.