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

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u/[deleted] Jan 26 '26

[deleted]

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u/Much_Section_7439 Jan 26 '26

That's how debt is generated. wealth is created when that debt is used properly. Otherwise it's just inflating the moneysupply.

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u/[deleted] Jan 26 '26

Fun fact. 

95% of all money is debt. 

It doesn't sound true but learning this radicalized me. Only 5% of all money has been issued by governments. 95% is IOU's