
How Is Money Created? – Everything You Need to Know - superasn
https://www.youtube.com/watch?v=mzoX7zEZ6h4
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superasn
I know this is a video but few things have been quite eye opening namely:

1) Central Banks have no saving in their account, can't go bankrupt but can
create infinite money and buy govt bonds

2) The money must be paid back by the future citizens either through tax or
inflation

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neilwilson
(2) is wrong. Or at least the wrong way of thinking about it.

Bonds are savings. When the savings are spent they create the _extra_ flow
that pays back the bond. It's just a continuation of a suspended spending
chain.

Always remember that spending comes first and causes taxation - which will
always match the initial spending to the penny _unless_ it is delayed by
people saving (ie not spending the instant they get their income).

Imagine a stone skipping across a pond with each bounce being a tax point.
Saving is pressing the pause button on that process, which then resumes when
the savings are spent again.

And of course the assets may never be spent. They may just pass down from
generation to generation. And likely will since that is the basis for pension
funds.

