An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
“Commercial banks boost the money supply by issuing a second layer of money on top of the central bank money layer, through a process called credit creation of money (sometimes called “fractional reserve banking”) to create commercial bank money, which we see as bank deposits in our bank accounts.”
We also see federal spending as deposits in our bank accounts. For example, Social Security benefits are added to people’s bank accounts. When the federal government spends trillions on military contractors, those trillions go into the contractors’ bank accounts. And so on.
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I saw another article on the Huffington Post which says that Los Angeles voters will decide in November whether to take city money out of the hands of private banks, and put it into a publicly owned bank.
Wouldn’t that be a sight? A public bank could fund all kinds of development without the city having to borrow money from usurious private banks, or borrow money by issuing municipal bonds. The city could fund low-cost housing for L.A.’s homeless population (the USA’s largest).
Naturally the private banker-thieves claim that this boon to city taxpayers would be too costly for city taxpayers.
“Because a public bank is not a for-profit business, it can offer lower interest rates than private banks, saving billions of dollars over time. And because the city owns the bank, any interest income would flow back into its coffers. That reduces financing costs, and facilitates more lending. Plus, the money stays at home, circulating in the local economy rather than traveling into an investor’s pockets or a risky trading scheme.”
Naturally the banker-thieves will do whatever is necessary to stop this from happening. They will be helped by idiots among the peasants (i.e. the Frankos of the world).
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“Commercial banks boost the money supply by issuing a second layer of money on top of the central bank money layer, through a process called credit creation of money (sometimes called “fractional reserve banking”) to create commercial bank money, which we see as bank deposits in our bank accounts.”
We also see federal spending as deposits in our bank accounts. For example, Social Security benefits are added to people’s bank accounts. When the federal government spends trillions on military contractors, those trillions go into the contractors’ bank accounts. And so on.
++++++++++++++++++++++++++++++++++++++++
I saw another article on the Huffington Post which says that Los Angeles voters will decide in November whether to take city money out of the hands of private banks, and put it into a publicly owned bank.
Wouldn’t that be a sight? A public bank could fund all kinds of development without the city having to borrow money from usurious private banks, or borrow money by issuing municipal bonds. The city could fund low-cost housing for L.A.’s homeless population (the USA’s largest).
Naturally the private banker-thieves claim that this boon to city taxpayers would be too costly for city taxpayers.
“Because a public bank is not a for-profit business, it can offer lower interest rates than private banks, saving billions of dollars over time. And because the city owns the bank, any interest income would flow back into its coffers. That reduces financing costs, and facilitates more lending. Plus, the money stays at home, circulating in the local economy rather than traveling into an investor’s pockets or a risky trading scheme.”
Naturally the banker-thieves will do whatever is necessary to stop this from happening. They will be helped by idiots among the peasants (i.e. the Frankos of the world).
https://www.huffingtonpost.com/entry/public-bank-los-angeles_us_5b6bef33e4b0ae32af954495
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