> don't they have to pay it back to the government with interest? government is just another borrower from the banks. most countries don't allow the government to borrow directly from the central bank and the central bank is autonomous. not under the direction or control of the government. moreover, most of the fiat currency doesn't even exist physically, as actual cash and coins. it's just fictional cash and coins on digital ledgers on servers in bank buildings. any bank anywhere can create more fictional cash and coins on its digital ledgers by pretending to lend them out. when, in actual fact, it's not lending but issuing them out of nothing. central banks admit this in their literature. they admit that bank loans create bank deposits and not the other way around.   vwzi7_ok   aqr2pagw
Romania