Credit Issuance Terminal
Werner's Credit Creation Theory
Banks create completely new credit and deposit money out of thin air when issuing loans. No pre-existing reserves or savings are transferred.
$500M
Productive Capital: 40%
Asset Speculation: 60%
Assets
($M)
CB Reserves$100
Productive Loans$400
Speculative Loans$600
Total Assets
$1,100M
Liabilities
($M)
Initial Customer Deposits$1,000
Created Customer Deposits+$100
Total Liabilities
$1,100M
| Tx # | Model | Loan Amt | Productive | Speculative | New M1 |
|---|
Macroeconomic Dynamic Engine
Broad Money (M1)
$1,100M
+10.0% Initial
Real GDP Output
104.0
+4.0% Output
Consumer Inflation
100.8
+0.8% CPI
Asset Price Bubble
112.0
+12.0% Inflation
Money Supply Creation & Transmission Flow
D3 Dynamic Flow
Macro Trajectories: Real GDP vs Asset Bubbles vs CPI
Multi-Period Simulation
Bank Money Creation & Credit Allocation Proof Surface
Initial system loaded: $1,000M baseline deposits, $100M central bank reserves. Issue a loan to simulate bank balance sheet expansion and macro transmission.