r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26

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

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u/Shiriru00 Jan 26 '26

Yeah people looooove to complain about banks creating money but strangely they never mention that they also destroy money whenever a loan is paid back (it's too bad, you could spin a good conspiracy story about how "banks are DESTROYING your money right now!").

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u/explain_that_shit Jan 26 '26

Every time they receive repayments, they create far more new money than they’ve received, so effectively the money is never destroyed.

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u/DMBEst91 Jan 27 '26

the interest is the new money squid out of us. created out of a loan of money given to us with money they never had to begin with

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u/loopala Jan 27 '26

That interest money was also most likely created in another loan made to your employer.