This is a very crude first pass at looking at the impact of bank money creation on the money supply as well as transfer of money to the FIRES unproductive sector of the economy.

The issue of increasing private and government debt to banks is a major concern after the financial crisis of 2008 (see Figure at link given below). In order to understand why our society and government is increasingly indebted to banks we need to understand how our current money system works and why we need a continuous infusion of new money in a growing economy. “Why We Are Increasingly Indebted To Banks?” investigates the reasons behind this and suggest a possible solution.

The issue of increasing private and government debt to banks is a major concern after the financial crisis of 2008 (see Figure at link given below). In order to understand why our society and government is increasingly indebted to banks we need to understand how our current money system works and why we need a continuous infusion of new money in a growing economy. “Why We Are Increasingly Indebted To Banks?” investigates the reasons behind this and suggest a possible solution.