Is it true that the only way to create money is through debt?

Please review the attached documentary. Is it true that the only way to create money is through debt. Did the producer have an agenda? I feel like this is not the whole story.

Official response from submitted
Thank you for your question, Joseph. I apologize in advance I do not have the time to watch the entire video, but I will do my best to answer: Debt is the major way that money is created now chiefly by banks (when an individual or enterprise obtains a loan from a bank, the bank simply credits that person or firm's bank checking account with the amount of the loan thereby "creating" money). When governments create money they do the same thing by giving banks loans via crediting their accounts with the government with an additional sum equal to the loan. However, governments can also simply print and distribute money and/or deposit sums of new government-created money into the accounts of persons or firms. Banks have wanted to tightly control the government's money-creating powers lest governments choose ways of increasing or decreasing the money supply in an economy that do not profit banks or, worse still, hurt banks' profits. Limiting money to debt is one way of exerting such control. It is not the only or the necessary way to do it.

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  • Paul Lebow
    commented 2016-09-15 20:33:02 -0400
    No, banks should merely be a utility to aid in the distribution of money. The government (the people) should decided how that money is distributed. The US Dept of Defense is a perfect example of how the government can efficiently inject money into the economy for what it perceives to be the good of society. There is no reason why all public needs should not be addressed similarly (education, medical, infrastructure, energy, etc. (see
  • Paul Lebow
    tagged this with Important 2016-09-15 20:33:02 -0400
  • Paul Lebow
    tagged this with good 2016-09-15 20:33:02 -0400
  • Betsy Avila
    responded with submitted 2016-07-11 18:23:37 -0400
  • Joseph Mustion
    posted about this on Facebook 2016-07-07 06:37:55 -0400
    Ask Prof. Wolff: Money as debt
  • Joseph Mustion
    published this page in Ask Prof. Wolff 2016-07-07 06:35:52 -0400