TheHolyChain @TheHoly_Chain - Twitter Profile

Great question When a bank issues a loan, it does not loan out deposits. It creates new money as a credit entry You sign a loan agreement & it becomes an asset for the bank Bank credits your account & the new deposit becomes new money in circulation Banks are credit creators rather than intermediaries Bank-created money is created with interest Because the interest is not created in the money supply, the system requires perpetual growth, constant new debt or defaults This is why the private credit system is inherently inflationary & extractive over time Governments do not create new money to spend directly They instead issue bonds purchased by banks, pension funds, foreign governments, or the central bank This is government borrowing which is printing by selling promises Government-issued money is also interest-bearing, which means it has the same inflationary dynamic as private bank credit creation Tax serve 3 functions in a fiat system 1 Prevent inflation from excess government spending. If governments printed unlimited money, it would raise spending power without increasing production & create inflation. Taxes remove money from circulation, acting as a drain on the system 2 Give the currency value. If the government requires taxes to be paid in its currency, that alone creates demand 3 Redistribute and fund services. Funding services are not the main monetary reason, that’s the political justification. The monetary purpose is inflation control & currency demand Governments spend money into the economy & taxes destroy part of that money to keep the system alive This is the part people misunderstand the most If new money is printed but does not create new goods, new services, new infrastructure or new real output, then you get more money chasing the same amount of goods, which raises prices Examples: Money printing for bailouts, war spending not tied to productive output, stimulus without corresponding output growth, interest-bearing credit expansion for consumption This type of money requires taxation to remove excess money & prevent inflation If new money is issued to create new productive output, the money supply increases in proportion to real wealth Examples: Building infrastructure, funding energy projects, paying workers to produce real goods & services or capital investments with measurable output If production rises faster than money supply, no inflation occurs In such cases, taxation is not required to offset the issuance, because real-world value backs the currency expansion After the Weimar hyperinflation & Great Depression, Germany introduced Mefo Bills in 1934 It was a government-created promissory note issued to construction & industrial companies They were not backed by gold, not borrowed from banks, backed by future labor & productive output & used to fund public work Money was issued only when workers produced output Idle labor was turned into productive labor Factories, infrastructure & goods increased alongside the money supply The credit carried no compounding interest & money was created only to mobilize productive capacity, not consumption or speculation When money creation matches real productivity, inflation does not occur Germany reduced unemployment from 30% to 0% in a few years without runaway inflation Inflation problems emerged later only when issuance shifted to unproductive military expansion Today’s system is a public–private hybrid Banks create most money via credit, charge interest & expand the money supply Governments issue bonds purchased by banks & central banks, borrow the currency they themselves issue & tax to control inflation created by both government & private banks The government effectively outsourced money creation to private banks & then taxes you to stabilize the system for banks profit They socialize the losses & privatize the gains. It’s a ponzi scheme & you pay taxes to service the interest on banks debt.

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TheHoly_Chain retweeted

Simon Dixon

@SimonDixonTwitt

3 months ago

🇮🇪 Ireland begins testing its proposed "digital wallet app," as part of EU regulations that all EU countries must provide a "EU Digital Identity (EUDI) Wallet" for accessing public services by the end of 2026 and 2027 for private services.

SimonDixonTwitt's tweet photo. 🇮🇪 Ireland begins testing its proposed "digital wallet app," as part of EU regulations that all EU countries must provide a "EU Digital Identity (EUDI) Wallet" for accessing public services by the end of 2026 and 2027 for private services. https://t.co/iB2hI4xJCT

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TheHolyChain

@TheHoly_Chain

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