Options for Banking Reform

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ETNIKSI am so glad you in Britain are getting your Parlamentarians to discuss this most important issue and elevate the degree of consciousness they have regarding the importance of Money Creation relative to the Global Debt Crisis we're suffering....

November 2014
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Andrew BuckleyThe most pernicious case of this with regards to MMT is their definition of money creation, and how they carefully (almost dangerously) distinguish it from bank credit. It's this financial asset thing again. Their take is that only the government can create money, because bank loans create no net ...

last month

montmorencyI have posted this in another thread, but it seems relevant here:http://www.monetary.org/wp-con..."A Discussion of Modern Money Theory and New Currency TheoryPaper prepared for the American Monetary Institute's 9th Annual MonetaryReform Conference, Chicago, 19–22 September 2013Joseph Huber"It comp...

last month

Captain AmericaOf-course money spent on taxation is redistributed within the economy. It is debt-based money gong round and round....

last month
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PolymathThen why does North Dakota, the only state with a state owned bank, have the lowest debt burden throughout the US? The interest is recycled back into the productive economy.I don't doubt, however, that Positive Money is the optimal method....

November 2014

JamieWalton77Question: How is the Positive Money proposal fundamentally different from the Public Banking solution?Answer: The Positive Money proposal adds money to the economy without adding debt to the economy, whereas the "Public Banking solution" only adds money to the economy by adding more debt to the econ...

November 2014

JamieWalton77Mr Wolf's point was that in a large bust in a large country, the government of that country would not allow a bail-in, instead, they would do whatever it takes to preserve the deposits of the banking system, and he alluded that this is what Mr. Geithner writes in his book also....

November 2014
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Can we remove state support for banks?

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"Just remove state support for banks and let markets hold them to discipline!" -This argument often comes from the Austrian school of economics, and proposes that banks would not have taken so much risk without the safety nets provided by governments and central banks. Furthermore, without these safety nets, those banks that were mismanaged would have been liquidated and would have made way for new market entrants with better business practice: in other words, bad businesses would make way for good ones.

RJmakesnosenseRJ, you're an idiot....

last month

RJFran. No I'm not re risk. Its to do with double entry book keeping."In the present system the banks are doing the equivalent of using money ..." Can I suggest you read the PM articles carefully. Not mine because even PM do not agree with this.And maybe try to understand (it is tricky to understand b...

November 2014

Fran GriffithsRJ, you are confusing liability with risk. If I look after £10 for someone, I am liable to pay it back when they ask for it. There is little risk as long as I don't use the money to pay for the rail fare to the next town (say) in the hope of earning £100.In the present system the banks are doing t...

November 2014
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jakeThis Maxim that “Investors can always borrow if they are credit-worthy” confuses me, wasn't the credit crunch a demonstration that viable businesses were unable to access affordable credit from the banks due to the banks having too many toxic assets and the cost of credit going up?But the actual...

October 2014

RJBanks can only loan money if there is a willing borrower. And if Govts had increased interest rates then there would have been a lot less than there was before the crash. Or even required house buyers to have a bigger deposit. Govt could ahve stopped the overheating housing market but they did nothi...

October 2014

RJNotes and coins are not free of debt. Money (bank credit) is created when a bank loan money. Say £1000 to bob The banks JE isDEBIT Loan account (banks asset/Bobs debt) £1000CREDIT Bobs Bank account (Banks liability/ Bobs money) £1000Bob then exchanges £100 for 10 * £10 Notes. The bank JE isCRED...

October 2014
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