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foreign in this episode of money creation explained were going to cover how to create your own money with IOU notes like Banks do traditional Banks create money in the economy through the use of new loans such as mortgages car loans credit cards Etc each time a new loan is made to a borrower Banks create money by crediting those borrowers accounts with the bank deposit the size of that loan every new loan that a bank makes creates new money into the economy by just accounting entries onto their computers these numbers are a liability or an IOU from the bank to the customer the customer can then use their credit card debit card check or other forms of payment methods to spend those ious as though they were the same as cash the IOU notes platform extends the same power that banks have in creating and generating new money into the economy to all people in businesses it can do this because when a product or service is exchanged for credit that business extends to others directly at a cred