After posting yesterday's infographic on how banks create money by lending, there were questions and challenges, both here and on Substack, about how this suggestion is altered by the requirement to pay interest on this new money that has been created by a couple of entries in a double-entry bookkeeping ledger. This is my explanation:
I am not quite happy with the sketch in box 3, but I have not come up with anything better yet. I think the rest work, and this one is good enough.
How to expand this image
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How to download this image.
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The image library
We have a library of these images. It is available here. All downloads are free, but donations help our work.
This one is specifically available here.
AI use
I wrote this infographic. I created the image using AI, but under my very specific direction.
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