ABSTRACT
Deposit banks will only carry out payment for clients considered solvent. However, any payment is an emission and, therefore, any payment is carried out by the first department of banks. Any creation of money defines a “demand without supply”, a net or excess demand. Indeed, the client spends in his purchases a money newly born that he therefore does not receive from his sales. An economy devoid of banks would also be devoid of capital. Any financial capital is a claim on the borrower. The sum of loans can be positive in society only if it exceeds the sum of the corresponding borrowings. The emission of bank money adds therefore the “third dimension” that alone enables the avoidance of the tautology of the equality of loans and borrowings. Before the introduction of bank money, money was a two-dimensional entity: it was the form of physical products and, in the alliance with these products, it defined social income.
