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RE: Bounty 10 Steem: Who creates the fiat money
This was my assumption and also make sense. As now the bank owes all of the money to the fed. So now if i default the bank still owes the money to the fed. If I pay it off the bank earns the interest.
So now the bank is responsible. This will assure that the system does not get abused.
exactly, also dont forget that fed is printing theyr green paper only because that there is demand from commercial bank (which is only backed by your promise) and it means fed is allowed create $$$ from air + interest and then commercial bank multiplies it (interest), whih also increases quantity of ''money'' from air