When it comes to money creation, many feel that since it is "created out of thin air" there is nothing backing a deposit. After all, with fractual reserve banking, there is no need to keep the currency in the bank.
Here is some insight: this idea makes no sense since there was no currency to begin with.
In this video I discuss what is backing the deposits. Double entry accounting guarantees there is something there. What is it?
▶️ 3Speak
