I asked various people about this. The general theory is that they're using their cash resources to buy back bonds. So the bank will become asset rich/cash poor(er) and there will be more cash out in the world to be used. But that's not the same as creating money out of nowhere; it's just shifting around what is already there.
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Spending as long as I do here, it's easy to forget that Oddworld has actual fans.
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