Date: 2025-07-03 Page is: DBtxt003.php txt00003387
A Central Bank can create money by buying assets from a Commercial Bank ... paying with money it is creating.
A commercial bank can create money by giving 'credit' to its customers ... the customer has money to spend and the bank merely created an accounting entry recording a receivable from the customer.
There is liquidity when this system expands and crisis when it contracts.
Meanwhile the real economy of Main Street has a very different dynamic and is ignored. In this real economy, needs are paid for with money coming from wages and jobs. When payrolls contract workers and their families become stressed ... and then the economy of which they are part.
Something like a 'Jobs Bank' that creates money to fund job creating investment can help address this problem.
For more on this contact Peter Burgess ... peterbnyc@gmail.com
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See more at http://www.truevaluemetrics.org .