Not necessarily, could also be IOU, but usually today its the local money from a state/gov - you could also sign up for working for "1 liter of milk,3 potatoes etc."
NVDA itself(!) does not increase M4 - if they give a loan, its an assets swap on their balance sheet with no influence on money in total available (since the money on their account is gone!)
No, its not! Its a swap on the active/left side of the balance sheet: If my mum borrows me 1 USD for icecream, she did not create money, instead she swapped her positions in her assets/left side of her balance sheet.
If NVDA gives a loan, its a swap on the active/left part of their balance sheet - thus, this does not have an effect on overall(!) money suppley. The balance stays the same, also the total amount of money in the whole system at that current point in time.
If a bank gives a loan, then it is extending/enlengthing its balance sheet. (the money created,though,needs to be available on the central bank account to float to other banks when paying for something,therefore we have liquity rules in reg reporting in a bank etc.,meaning someone else needs to have increase thecentral banking liquidity at another part in the system, see things like: https://en.wikipedia.org/wiki/Maturity_transformation )
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As working in the field, I know the BOE paper very well ;-)
If NVDA gives a loan, its a swap on the active/left part of their balance sheet - thus, this does not have an effect on overall(!) money suppley. The balance stays the same, also the total amount of money in the whole system at that current point in time.
If a bank gives a loan, then it is extending/enlengthing its balance sheet. (the money created,though,needs to be available on the central bank account to float to other banks when paying for something,therefore we have liquity rules in reg reporting in a bank etc.,meaning someone else needs to have increase thecentral banking liquidity at another part in the system, see things like: https://en.wikipedia.org/wiki/Maturity_transformation )
> Nvidia is creating a lot of money in our economy.
Wrong:
a) a company cannot create money in todays modern 2-level fiat systems, this can be done only by central banks
b) what NVDA does is "generating requests for more money in the system", throughthe demand side (either taking loans themself or having lots of customers who are willing to take a bank loans to invest, or other participants who wants to buy whatever stuff on a loan)
c) any money that is created on the "local bank system level" needs to be there on the existing central bank account when the money is leaving the local system, ie. transferred to another bank (like "paying NVDA bill for delivery of some chips")
Heating consumes a lot, because of this at least in some of Europe we still use natural gas over electricity. This allows your only energy spending to basically become a television and a fridge, sometimes your washing machine and dishwasher.
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