MONEY CREATION ANDTHE

BASIC SHAPE OF THE ECONOMY

PROVINCIAL/STATE/MUNICIPAL GOVERNMENTS

PRIVATE BANKS

COMPANIES/INSTITUTIONS/NGOs

PEOPLE

OTHER

FEDERAL GOVERNMENT

bonds

money

new money

loan repay

savings

money used to buy earth’s resources to produce goods, services and infrastructure

money used to support living standards and population growth

money interest

direction of flow

tax

spending use

type of medium exchange

YES

can the entity repay the loan?

incomeemployment

debt repaidwith interest

leftover fundsreturned to bank

> bankruptcy> asset liquidation

welfare grants loans

grants loans

grants loans

grants loans

NO

I

I

I

I

I

CENTRAL BANK

*

* Businesses gain a great deal of their profits from working with other businesses (B2B), not just through the public and the government.

**

**

This loan repayment process is mostly the same of all loans.

purchases investments donations loans

TYPE OF MEDIUM EXCHANGE SPENDING USES

I

purchases investments donations loans

COMPANIES/INVESTORS

OTHER COUNTRIES

grantsinvestments

loans

loans

loans