Skip to content

Thus, our national circulating medium is now at the mercy…

“Thus, our national circulating medium is now at the mercy of loan transactions of banks, which lend, not money, but promises to supply money they do not possess” quote by Irving Fisher
Download Open image
“Thus, our national circulating medium is now at the mercy of loan transactions of banks, which lend, not money, but promises to supply money they do not possess”

Irving Fisher

About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

The quote critiques how banks create money through promises rather than actual cash, highlighting systemic financial risk.

In simple terms: Banks lend promises, not real money, risking stability.

Key Takeaway

Be wary of financial systems built on credit.

Themes

economics finance risk

Mood

analytical concerned

Type

critical educational

When to use this quote

  • investment decisions
  • policy analysis
  • risk management

Key Concepts

monetary policy banking practices

Questions to Reflect On

  • How does this affect everyday borrowers?
  • What safeguards can reduce systemic risk?
A Different Perspective

Credit‑based money can lead to bubbles and crises.

★ ★ ★ ★ ★ No ratings yet

More by Irving Fisher

Explore all 18 Irving Fisher quotes

More Bankers quotes

Browse all 464 Bankers quotes