Read this incredible article that presents the first empirical evidence in the history of banking on the question of whether banks can create money out of nothing!
An empirical test was conducted, whereby money is borrowed from a bank, while its internal records are being monitored, to establish whether the bank transfers these funds from other accounts within or outside the bank, or whether they are newly created.
This study establishes for the first time empirically that banks individually create money out of nothing. The money supply is created as ‘fairy dust’ produced by the banks individually, "out of thin air".
Read the full Article - discover the Empirical Evidence...