Wednesday, July 17, 2013

Bill Mitchell — A case for public banking


Can a society afford to risk the potential consequences of highly concentrated private banking?

Bill Mitchell – billy blog

A case for public banking

Bill Mitchell

6 comments:

Unknown said...

"Credit" is the creation of new purchasing power. It therefor dilutes existing purchasing power, at least temporarily and often, as in the case of land, permanently. So who then will the government deem "creditworthy" of legally stolen purchasing power? Those who are already rich as the private sector does? Cronies?

netbacker said...

F. Beard, I know many have asked you this before, but I'll ask again :)
So based on what you are saying (creation of new credit/dollar dilutes existing purchasing power), are you implying that the very first dollar ever created is worth all of today's wealth?

Unknown said...

Obviously, other money existed before the first dollar, so no.

But hey, common stock is an ethical form of endogenous private money creation - the existing stock (money) holders can (at least in principle) vote on any new issue (to buy new assets). Moreover, the existing money holders would (hopefully) profit as the new assets came online - thus rewarding the temporary dilution of their common stock money.

Unknown said...

But what do the non-creditworthy get in our system? Maybe cheaper/better consumer goods and a job (at least till the bust takes it away) until that job is replaced with a robot financed with the worker's own legally stolen purchasing power.

A said...
This comment has been removed by the author.
Unknown said...

Hey Mr.,

Ever seen a balance sheet? Look on the right and note that Equity is there with Liabilities. Both are backed by the Assets.

So tell me why money can only be issued as Liabilities? In fact, money can be issued as Equity too and often is as companies use their common stock for asset purchases.

Oh, and I have owned stock.

Better trolls, please.