"So who are the lucky creditors who are the beneficiaries of our incredible nation debt growth. Somebody's wealth must be growing exponentially."
The lucky creditors initially are the institutions that form the banking system. which includes the RBA. However when the banking system extends credit it also creates a liability in that precise amount in the form of newly created deposits. Therefore the real creditors are those that ultimately end holding the funds so deposited, and that may include you. For instance, if a person sells a property to a first home buyer for $660,000.00 with $600,000.00 coming from a newly created out of thin air home load, obviously that the ;person to whom the banking system is going to end owing that money is the seller, who has now a credit over it and ultimately over the borrower as the banking system is just an intermediary between the seller and the borrower and getting just a fee for that task.
"Deposits and money are primarily born of credit Measures of money grew strongly over March and April this year, [ 2020] reflecting growth in deposits at authorised deposit-taking institutions (ADIs; Graph D.1). Deposit and money growth are typically driven by new lending by the banking sector. Lending creates deposits as the funds made available to a borrower find their way into a deposit somewhere in the banking system, either as a deposit in the borrower's account, or in another account when the borrower uses those funds to make a purchase."
