Lesson 1
Do Banks Actually Loan Money When Making You a Loan?
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What is the Problem?

This one comes from Colin in Yorkshire, and his question “I’ve seen a lot of debate online about Bank loans. Do Banks actually loan anything when they make a loan?”

In order to understand the question and the answer, you are advised to engage in some homework and learn about the creation of money: Modern Money Mechanics, the Chicago Plan (IMF Website), and the Bank of England Quarterly Bulletin 2014 Quarter 1, Volume 54, No. 1; are good places to start.

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  • loans
  • money
  • bank
  • money creation

You’ve heard the phrase “They’ve got loads of cash” So you and your cash really is all about you and your cash – and how you can stop others from taking it away. How you can make the most of what you’ve got and how you may even be able to increase it over time.

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