In 2013 the state created money in Sweden was 85 billion crowns. This is what our politicians call our ”deficit”. This money will become an asset to the households and firms in the private sector to buy things when they are spent into the economy by the state.
In the same year bank created money amounted to 1700 billion plus 10 billion in reserves. This money is created by debt.
What if we had full reserve banking as an alternative to fractional reserve banking, in which banks instead were required to keep the full amount of each depositor’s funds in cash, ready for immediate withdrawal on demand. And by then function as the asset managers they are meant to be in the first place.
Think of what we could do with 1710 billion crowns for the benefit and progress of society.
This thought is very appealing. Unfortunally only Island seem to have the political courage to consider it as a practical reality.