Ellen looks at the orignal QE proposal of Richard Werner, who surfaced the idea in relation to the Japanese crisis in the Nineties. Werner has recently come into prominence due to his contribution to the development of Positive Money. See also Where Does Money Come From?: A Guide to the UK Monetary & Banking System by Andrew Jackson, Josh Ryan-Collins, Tony Greenham, and Richard Werner
Web of Debt
How the Fed Could Fix the Economy—and Why It Hasn’t
Ellen Brown
"Webster Tarpley observes that the Fed advanced $27 trillion to financial institutions through the TAF (Term Asset Facility), the TALF (Term Asset-backed Securities Loan Facility), and similar facilities. He proposes an Infrastructure Facility extending credit on the same terms to state and local governments. It might offer to buy $3 trillion in 100-year, zero-coupon bonds, the minimum currently needed to rebuild the nation’s infrastructure. The collateral backing these bonds would be sounder than the commercial paper of zombie banks, since it would consist of the roads, bridges, and other tangible infrastructure built with the loans. If the bond issuers defaulted, the Fed would get the infrastructure."
ReplyDeleteBoth she and Tarpley remain blind to the fiscal authority of our government... they are libertarians.
"WE" dont need the Fed to do anything except keep track of the accounting balances associated with what the government budgets/authorizes/appropriates for public purposes.... sheeeeesh..
rsp,
Exactly, Matt. Here we have another article talking about how the CB could do fiscal-like things if only they were authorized by the fiscal authority to do them. Why is it such a novel idea that the fiscal authority should use that authority to do, you know, fiscal things itself?
ReplyDeleteDavid,
ReplyDeleteIt's like NOBODY out there can see our govt possessing any authority... this is horrible.... what the hell?
rsp,
In high school math class we had to show are work. We needed the right answer along with the right mechanics to get credit for the answer.
ReplyDeleteI would say in economic policy the right answer is only needed irrespective of mechanical understanding. the result would be the same. essentially.