Most money is created by banks. When a bank makes a loan it does an accounting trick where the money is inside the banking system! (i.e. not given as a pile of cash/gold)
Private credit is all mortgages, credit card debt, auto loans, etc. All with high interest rate. All impacting demand.
Government over spending creates a debt to be repaid (e.g. Treasuries). This is much smaller than private credit and has much lower rates.
@mutageno2 @Zeb loans don't cause inflation because they move spending forward but make up for it by spreading out the repayment, and there is no increase in the money supply.
Government creating money from thin air and spending it (never to be repaid) is where inflation comes from.
With a *private* central bank (Fed) the government issues Treasuries to be repaid in the future to the holder (be it private, foreign, or the Fed). The Fed and the banking cartel have monopoly on money printing. There's no longer even a fractional reserve (masks off!).
This is the scam of the central bank cartel. They have the world by the balls since WWII.
Please see my earlier post with the book by a former central banker:
@Zeb a lot of the institutional money chased the AI bubble, but a lot of it is in money markets (i.e. cash).