Hello fellow rebel capitalists hope you're well.

Let's go into something that I think confuses a lot of people.

And this is, you know, I always talk about how the banks can create their own money.

They can create limitless dollars.

There's nothing constraining the banks except for counterparty risk.

And there's no way to know that definitively because we've got shadow banking and we don't really know exactly how it works.

We can just kind of guess and use other charts of like bank reserves and M2 money supply and then like global dollar nominated debt and we just kind of have to put the pieces of the puzzle together.

But the pushback I get often is, well, Georgia, banks can create their own money, why don't they just create all this money and buy everything?

Like why don't they just buy all the gold?

Why don't they just create all the money they want? Just buy every house on the planet. Why don't they just buy every house on the planet.

They just buy the entire stock market.

And this is actually a really good question.

And it ties in to a back and forth I had today on Twitter with my good buddy Bob Murphy and Bob is a very

famous Austrian economist probably one of the most famous, and obviously it's really a smart dude and he writes

for meiziz.com, I believe, quite often. And he responded to a tweet that I have with this article which walks through how the banks operate, which gives you some insight as to why most people who understand banks create money

or create money through additional lending, it illustrates how they see the constraint

in the banking system going back to the reserves.

And then I just offered a thread where I just had a counterpoint that I believe is accurate based on Snyder and a lot of people that I've studied and then just doing about a million whiteboard videos on this stuff and just kind of looking at other statistics.

But again, no one knows for sure because it's in the shadows.

I think we can tell that the probabilities are high, but, especially reserves really don't constrain the banking

system.

So let's go into this.

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