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.
Technically, banks don't lend (except to each other, other CB account holders, and the CB itself); instead they extend what is, in essence, the PUBLIC'S credit but for private gain.
Biden has promised the status quo* but with Trump there's the wild chance we could have honest banking reform or at least a start on it such as fiat accounts for all citizens.
Not that I'll vote for either...
*while the MMT school proposes to INCREASE bank privileges.
Great stuff -- but it would be helpful for Mike to go over in even more detail how "dumping in so much in non-risk assets" affects banks. Again, slowly and in detail please. (for us morons)
Time t2 Fed adds 1T Reserve Assets "to lend out!" in reification error as they are unqualified in applying normal abstractions of Accounting... never trained... all Art Degree people there... left to think Reserve Asset abstractions are REAL and one can "lend them out!"... ie morons... ie not trained properly to be occupying their administrative positions..
LR = 1T/(8T + 3T) = 0.0909 = severe violation of minimum ratio
Asubrisk prices immediately reduced by 1T to 7T (approx 9% crash and cessation of additional credit provision by system) so ratio returns back to minimum 0.1 as
1T/(7T + 3T) = 0.1 = LRmin returns to reg. minimum as statutorily required...
left to think Reserve Asset abstractions are REAL and one can "lend them out!". Franko
The only reason banks can't lend out their reserves (except for vault cash) is that the non-bank private sector may NOT have fiat accounts of their own.
Otherwise, banks COULD lend out their reserves - into non-bank private sector accounts - abstractions or not.
“ 14 For whenever they of the nations that have no law, by nature may be doing that which the law demands, these, having no law, are a law to themselves, 15 who are displaying the ACTION of the law written in their hearts, “. Rom 2
That word translated here as English “action” is also an abstraction that you do not understand either... you keep making the same reification error over and over and over... and seek to employ the rules of literal human behavior and conduct mandated in Leviticus....
Homosexual behavior is not forbidden in the 10 Commandments; theft is.
Nor does loving one's neighbor entail stealing from him, however subtly.
As for your alleged authority, even a perfectly functioning government-privileged usury cartel, as Warren Mosler would make it, still steals from and oppresses the poor.
So you wish to "perfect" an inherently thieving system? How are you going to explain that when you are Judged?
What's to understand about Assets = Liabilities + Equity?
Also, if accusing me of ignorance is the best refutation you have of a rather simple, undeniable assertion then it's your own competence that's suspect - that or your truthfulness ("Thou shall not lie" is also one of the 10 Commandments).
Best one yet Mike...
ReplyDeleteTrump likes it when his lenders take losses.
ReplyDeleteTechnically, banks don't lend (except to each other, other CB account holders, and the CB itself); instead they extend what is, in essence, the PUBLIC'S credit but for private gain.
ReplyDeleteBiden has promised the status quo* but with Trump there's the wild chance we could have honest banking reform or at least a start on it such as fiat accounts for all citizens.
Not that I'll vote for either...
*while the MMT school proposes to INCREASE bank privileges.
Great stuff -- but it would be helpful for Mike to go over in even more detail how "dumping in so much in non-risk assets" affects banks. Again, slowly and in detail please. (for us morons)
ReplyDeleteTime t1:
ReplyDeleteLRmin = (Atier1)/Atotal = Atier1/(Asubrisk + Asubnonrisk) = 1T/(8T + 2T) = 0.1
Time t2 Fed adds 1T Reserve Assets "to lend out!" in reification error as they are unqualified in applying normal abstractions of Accounting... never trained... all Art Degree people there... left to think Reserve Asset abstractions are REAL and one can "lend them out!"... ie morons... ie not trained properly to be occupying their administrative positions..
LR = 1T/(8T + 3T) = 0.0909 = severe violation of minimum ratio
Asubrisk prices immediately reduced by 1T to 7T (approx 9% crash and cessation of additional credit provision by system) so ratio returns back to minimum 0.1 as
1T/(7T + 3T) = 0.1 = LRmin returns to reg. minimum as statutorily required...
Rinse and repeat every 10 years or so....
left to think Reserve Asset abstractions are REAL and one can "lend them out!". Franko
ReplyDeleteThe only reason banks can't lend out their reserves (except for vault cash) is that the non-bank private sector may NOT have fiat accounts of their own.
Otherwise, banks COULD lend out their reserves - into non-bank private sector accounts - abstractions or not.
You don’t understand Accounting....
ReplyDeleteJust like here:
ReplyDelete“ 14 For whenever they of the nations that have no law, by nature may be doing that which the law demands, these, having no law, are a law to themselves, 15 who are displaying the ACTION of the law written in their hearts, “. Rom 2
That word translated here as English “action” is also an abstraction that you do not understand either... you keep making the same reification error over and over and over... and seek to employ the rules of literal human behavior and conduct mandated in Leviticus....
It’s absurd..,
Going to go out and stone a homosexual today too?
ReplyDeleteHomosexual behavior is not forbidden in the 10 Commandments; theft is.
ReplyDeleteNor does loving one's neighbor entail stealing from him, however subtly.
As for your alleged authority, even a perfectly functioning government-privileged usury cartel, as Warren Mosler would make it, still steals from and oppresses the poor.
So you wish to "perfect" an inherently thieving system? How are you going to explain that when you are Judged?
You don’t understand Accounting.... Franko
ReplyDeleteWhat's to understand about Assets = Liabilities + Equity?
Also, if accusing me of ignorance is the best refutation you have of a rather simple, undeniable assertion then it's your own competence that's suspect - that or your truthfulness ("Thou shall not lie" is also one of the 10 Commandments).