PG. This is how our financial system works and it’s not different from our monetary system. Not public, but private banks create credit. There is no gold standard or physical value attached to money. Private Banks are creating money supply by creating debts and taking your money or savings or future income as collateral. They own your (saving) money, your mortgage ( debt). . They are legally the owners of your money, not you. Best case you have a claim or a deposit insurance. Of course your savings are turned into credit for others, which is a good thing and makes the world turn around. Same system is now applied for shares, they are detached from the share certificates and the companies ( the assets, the gold standard) and financial private companies are creating as many shares for ( retail) investors as they want, creating markets for longs and shorts. Governments has delegated the ‘credit creating function’ to private companies and they have turned it into businesses with shareholders . The stock market functions almost similar now. Don’t think that was the idea from law makers. However when something goes wrong the claimant, the citizen, the investor, the shareholder call for the government to intervene. Look at the failing of a bank. I think we need the government and the FED to make sure somehow crypto technology is used to tie ownership and underlying asset. Ownership is now with big money. Just my observation on your article.
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