When a bank lends out other peoples' money several times over that is the equivalent of "printing money" in my book. It is money that does not exist that other people can now spend.
As for "backed by assets," creating a piece of paper called a government bond or treasury note and then pretending it is an asset when it received by the Fed is somewhat disingenuous. Again, it is money from nothing but the government has pledged to pay it back, somehow.
I agree with the first part of what you said. Charging interest on money you have just created out of nothing is a bad idea. How it is not criminal, I don't know.
As for the second part, you included: "as long as they are backed". The problem is that there is no real backing.
When a bank lends out other peoples' money several times over that is the equivalent of "printing money" in my book. It is money that does not exist that other people can now spend.
As for "backed by assets," creating a piece of paper called a government bond or treasury note and then pretending it is an asset when it received by the Fed is somewhat disingenuous. Again, it is money from nothing but the government has pledged to pay it back, somehow.
Unfortunately you are arguing against something completely different. Please read my original comment fully
I agree with the first part of what you said. Charging interest on money you have just created out of nothing is a bad idea. How it is not criminal, I don't know.
As for the second part, you included: "as long as they are backed". The problem is that there is no real backing.
And there in lies the problem. That is the crux of what I was trying to say.
Printing money is not the problem, but the fact that it is not backed by anything AND we pay interest on it are the real problems.