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Ruud Harmsen==How this is a roundabout way of issuing debt-free money into the economy [...]==Debt-free money is a myth. It is impossible. Money by definition is what banks owe the public.Because a balance sheet, as the name implies, needs to be balanced, those claims by the public (right side of the bank's bal...

August 2014

Ruud Harmsen==The Bank of England could create money, without relying on anyone to go further into debt. ==No, they can't. Not until you change the definition of money. Money = what banks owe the public.You can pay with money (= part of your claim on your bank) because everybody trusts banks. What kind of money...

August 2014

Steve Wallis"This saves the government annual interest on £50bn of the national debt, freeing up more money for government spending."I've just checked interest rates on government bonds at http://markets.ft.com/research... and 3-year bonds are just over 1% (and only 3.37% on 30-year bonds). The annual interest...

June 2014
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bill439Has Coppola never heard of shadow banking. In 2013 its total assets were $21trillion ($67tr in 2007). Wha do they do with them? They lend them and they are outside the commercial banking system....

May 2014

SimonIt is difficult to understand why Coppola and Pettifor think that the existing system has merit when they must be able to see the negative effects it has had in recent times. Coppola has worked for a bank, and raises accounting objections to changing things, when an engineering solution is required....

May 2014

Sanjay MittalFrances Coppola’s claim that “Banks are not fund managers” is a joke. If she looked at the Financial Times she’d find that every large bank “manages” a whole string of mutual funds or “unit trusts” as they’re called in the UK. Indeed, in Laurence Kotlikoff’s version of full reser...

May 2014
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The Power to Create Money is Safer with the State than with Banks

FT response

In any economy there must be someone with the power and authority to create money. This power historically sat with the king and the Royal Mint, until it was transferred to state control under the Bank of England. But now the power to create money sits ultimately with commercial banks, which create new bank deposits as they make loans. These deposits make up 97% of the UK money supply.

Simonio"HM Treasury would still need to borrow funds from the markets if it found that taxes plus the money created by the Bank of England were not sufficient to cover expenditure."Ben-this worries me as it relies on bond issuance and the money as debt model again (as I understand it). The bond market mec...

May 2014

SimonioThe obsession with inflation is always used as an argument against Sovereign Money Creation -infact it is the obsession with inflation figures as a placebo that is at the root of so many issues (in the Euro!). In his book on Modern Money Theory, Randall Wray, as Ben writes above, makes it clear tha...

May 2014

DozyHoleI take it you just read the headline? This is not what they are saying....

May 2014
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bill439I think we should have some idea of what sort of expert should be on the MCC. For me, it would need to be linked to the National Office of Statistics so that the recent data on the economy is available to it. It needs economists who understand macroeconomics who can give advice to the government.on...

May 2014
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Is full-reserve banking really that hard to understand? (A reply to John Aziz)

The week_response

It's been a busy week for journalists and economists criticising our proposals without bothering to a) read them or b) understand them. Jeremy Warner in the Telegraph claims we're in favour of allowing politicians to  "print money to their hearts' content", when we've clearly stated that we wouldn't trust politicians to be responsible with the power to create money than we would trust banks. But John Aziz's blog in The Week is this week's worst offender for inaccuracies and misconceptions.

MahadI think positive money is confusing many people when they say that banks create money out of thin air and people cant seem to wrap their head around the concept so i decided to post a link to a video which explains how banks create money and its simple and hopefully nearly all the Q's people have sh...

5 weeks ago

Ruud HarmsenDoes this site have a Like or Favourite option? If not: here's my Like/Favourite for Dantey's contribution hereabove....

August 2014

Ruud Harmsen==This is in contrast to the current catch 22, where we're required to encourage households to go further into debt in order to keep the economy growing.==That has nothing to do with the mechanism of money creation as such, and is not an argument against it....

August 2014
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