, translated from Dutch by the author.
Money that someone, a company, including a bank, could use to buy something or pay for something, must be at the left of the balance sheet. It is an asset, something the bank owns.
Money that results from money creation however, is always at the right side of the balance sheet. It is a liability, a debt to the owner of that money.
That alone makes it clear that a bank could never use money creation for their own benefit.
Copyright © 2016 R. Harmsen. All rights reserved.