> They don't need to "do anything" with your deposit because it doesn't exist.
Uhm yeah they do. If they take my money and then just do nothing with it then they won't make any money from it. Banks invest your money.
(I don't think that's the main way they make money - it's probably mostly from credit card interest, but they definitely do it.)
The money you pay into banks absolutely exists in every sense.
Banks can create money when they issue loans, which I suppose you could argue doesn't exist. But they aren't allowed to create unlimited money. I'd say it exists as much as any other money exists.
You're wrong, but you're far from alone. Essentially the way the whole finance industry works is there is an enormous gulf between their understanding of money and the general public's understanding. They don't contribute anywhere near as much to society as people think, in fact they fuck a lot of things up, but they run the books, of course they'll come out on top.
Uhm yeah they do. If they take my money and then just do nothing with it then they won't make any money from it. Banks invest your money.
(I don't think that's the main way they make money - it's probably mostly from credit card interest, but they definitely do it.)
The money you pay into banks absolutely exists in every sense.
Banks can create money when they issue loans, which I suppose you could argue doesn't exist. But they aren't allowed to create unlimited money. I'd say it exists as much as any other money exists.