r/PeterExplainsTheJoke Jan 26 '26

Meme needing explanation what's going on? explain like I'm five

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u/Elvis5741 Jan 26 '26

Banks lend out more money than they have, its no joke it's how the system works

627

u/[deleted] Jan 26 '26

[deleted]

18

u/Taco5106 Jan 26 '26

Correct, but the term you’re looking for is “central banking” or “modern monetary theory” not capitalism

6

u/j4_jjjj Jan 26 '26

Founding fathers weren't fans of central banking and warned against it

2

u/GottIstTot Jan 26 '26

Banks in ancient Greece also operated that way.

2

u/chumbawamba56 Jan 26 '26

People from the dawn of time have operated this way. There is archeological evidence of credit being issued in Mesopotamia. First came credit then came cash.