The Creation of Money In the movie "It's a Wonderful Life", Jimmy Stewart in the character of George Bailey gives a concise description of how money is created. It may not be what you think. In the film, George Bailey is the president of a building and loan association. This is the about same as a savings and loan, except that the building and loan association focusses on using deposits to fund single owner construction projects. A savings and loan association has a broader reach, adding commercial startups and expansions, and other types of loans. In the film's story, which is set in the year 1939, there is a panic about the supply of money. As a consequence, in a single day a large number of the depositors wish to withdraw their money, because they fear the bank will fail and their money will vanish. George, being well aware that the bank can not, at a single given time, return all of the depositors money, has to calm down the depositors, re-assure them that
To ruminate means to turn a matter over and over in the mind. Let us just say that occasionally I write, and let others see what I have written. If it is interesting or useful to you, excellent. If not, there are many others on the internet.