[Verse 1: The Central Engine] Step inside the marble halls where policy takes form, The Federal Reserve sets up the economic norm. Not a single printing press just spinning off the page, It’s digital entries moving on a nationwide stage. When the Open Market Desk decides to make an ease, They buy up Treasury bonds and modern securities. With a stroke upon the keyboard, new central balances spark, Crediting dealer bank accounts directly in the dark. The Fed creates the base—the high-powered seed— Injecting deep reserves to meet a national need. [Chorus] Ink on a contract, digits on a screen, The biggest money engine that the world has ever seen. It doesn’t sit in vaults of gold; it isn't stacked in piles, It’s ledger entries multiplying over miles and miles. Loans create deposits, credit fills the square, Balancing the ledger out of thin air. [Verse 2: Fractional Reserves & Thin-Air Credit] Now follow those reserves down to the local street, Where commercial retail lenders and eager borrowers meet. A common misconception says the bank just takes your dime, And holds it in a lockbox until you draw with time. In fractional reserve, the rules are set in stone: They keep a fraction safe, but lend upon the loan. When someone needs a mortgage or a line to buy a store, The banker doesn’t pull cash out from beneath the floor. They write an asset on their books—the promise you will pay— And balance it with new deposits in your name today. Principal is born the moment contracts are signed, A brand-new spending balance systematically designed. [Verse 3: The Multiplier Cycle] That fresh deposit spends; it moves to someone new, Who parks it in their checking till the payroll is due. Bank B receives the funds, reserves a modest share, Then lends the vast majority right out into the air. Round and round the cycle spins, expanding through the net, The broader money supply—grown directly out of debt. When the borrower repays, the cycle works reverse: The credit is extinguished, extinguishing the purse. The interest stays as profit, the principal departs, That’s how commercial credit beats inside financial hearts. [Chorus] Ink on a contract, digits on a screen, The biggest money engine that the world has ever seen. It doesn’t sit in vaults of gold; it isn't stacked in piles, It’s ledger entries multiplying over miles and miles. Loans create deposits, credit fills the square, Balancing the ledger out of thin air. [Outro] From central bank open operations down to retail loans, It isn't paper papered over, nor is it carved in stones. The Federal Reserve sets the liquidity and price, Commercial banking multiplies the credit in a trice. Understand the ledger, reed between the lines: Money moves as confidence within institutional designs.
