No you mis wrote it, so I asked

So what exactly is credit?

credit is giving out an paper which says can be exchanged at the bank against banknotes. (bank accounts are also like papers which can be exchanged against banknotes)

while at this process you get an claim for banknotes

But isint money also the same thing, but you can claim to exchange it for goods

the same thing as?

Credit

well there are different kind of money

Like they are both guarantees of sorts right....

banknotes =/= fiat money

Uhhh, what is general currency called?

Which we use daily

Trump stole votes from Kanye and split it

Kanye shoudve won

@justkaus its euro but wellthere are euro bank notes and also euro fiat money.

i would have german videos about it but well that does not help

Ok ok. Let's go to the main point

Who gives credit?

Govt?

for giving credit (fiat money) you need a bank, banks give credit

you have goverment which makes rules for gioving credits

> for giving credit (fiat money) you need a bank, banks give credit
@hororizon44575 and money comes from credit. So it's right to claim money comes from banks?

and you have ecb which says you need an minimum of guarantys to give out an amount of credits

yes money comes from credit

thats why all this saying bank lends money is bullshit

I meant banks

No no, read it again

I did a typo

oh well yes it has to be banks (central banks are also banks which gives an other kind of credit to the bank) #interbankenhandel (in german)

Yeah, so it is banks

So if banks are the source of money. Why it's wrong to say they lend money?

According to you, what's the purpose of banks?

becouse lending means you have saved samething which you can than land out

banks do not have saved samething they creat samething thats an completly other thing

banks creat money and destroy money when credits are liquidated

Ah, ok

while how much they can create and in which rules is different from countrys

That makes sense

So what is the main purpose of banks? To keep putting money into the system?

well it depends who you ask. if they would not be privat i would say to guranty the right amount of money is in the sysem which does not couse high inflation or deflation rates

but well banks are privat which brings them to make as much money