That's not true at all. I can buy fresh FRNs without a loan in sight.
My loan officer wife spends her day “creating” FRNs at the local branch,on her computer screen, as she loans out thousands of fractionally ginned up dollars
It's true, when you borrow money from your local bank, you've increased the money supply. Without as much as a nod from the Fed. But your wife isn't creating FRNs.
But your wife isn’t creating FRNs.
True enough, at the current rate of reserve she creates not much more than dots on the screen, but if the bank’s luck holds out, you will default on your obligation and they can turn the dots into the tangibles that they hold in trust, like your home,car,education, medical procedure, couch, etc, then liquidate said assets to “stronger hands.”
What specie does she create, if not FRNs? How is the bank to be repaid?
Spinning flax into gold, so far only the Fed can do it, anything else is “counterfeit”. heh
As for buying FRNs, they all cost 1.5 pennies each, no matter the face value.
You’re pretty close to the teat, if you can get ‘em for that much.