As I said above, money (£s) and to a certain extent banking are areas which I'm interested so, here are my thoughts the above posts regarding 'money'
As Minsky said "anyone can create money, getting it accepted is the difficult part". So, rather than talk about 'money', I'll talk about £s as it's easy to get distracted with 'money'.
The UK has a fiat currency, the £. It's not backed by any commodity (we abandoned the gold standard decades ago) so, intrinsically, it has no value. Obviously it has value but it's not convertible to anything else as it was under the gold standard.
Some facts relating to our fiat economy:
. The £ is a creature of law
. All £s are created via keyboard. There are only two ways £s can be created:
1. Govt spending the £s into existence
2. Commercial banks making loans (loans create deposits)
. There is no such thing as fractional reserve banking in the UK.
. £1 will always be worth £1 as the govt will always accept it as such in lieu of your tax liability
. Without govt spending, the economy would collapse as govt spending injects and taxation drains
. All govt spending (or lack of it) is a political choice
Happy to discuss. Or not.