[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.