Where does money come from?
This is a educational post about money. Everyone wants money but do you know where money comes from?
- It's created by the governments (deficits we call them)
- Created by banks. When a person goes to a bank and takes a loan to buy real estate, money is created. You owe that money to the bank and the bank credits the real estate constructor gets the loan money into his account.
Many things in finance can be easily explained by money creation or destruction.