Fractional Reserve Lending

[Aractus]

What's stopping the gov from just creating more money to make those hospitals anyway?

Nothing but it puts us into debt because we have to borrow the bank's "invented money" by issuing bonds. We shouldn't have to issue government bonds to get loans from banks when we could just create the money ourselves. The money would still find its way into the system, but only because the government is paying people with it.

How it currently works:

1. Banks create money.
2. Banks loan their money to individuals, companies, corporations, and governments.
3. Governments guarantee the bank-created money.
4. Governments borrow bank-created money to spend.

How it should work:

1. Governments create money through the mint.
2. Governments spend newly created money.
3. Banks do not profit from this, the public does. The people who actually do the work are the ones rewarded with newly created money, not the banks who simply created a number in a bank account.