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Yes, they create money when they credit banks with interest if that's their policy, but other than that they are banks, which means they lend against assets. In that regard, there is no net creation of new financial assets.
Yes they create money, but there's a liability attached to it. A bad loan is a loss, no way around that. Losses should obviously be borne by the bank itself.
When he doesn't get invited to any serious MMT launches or talks in the UK he lashes out like a child in a school playground. His latest tantrum against Warren was because of the new MMT book launch by GIMMS, that he had nothing to do with. Was entitled leading thinkers and his ego just couldn't help itself.
Every time he attacks the founders of MMT it is because he has been frozen out of some MMT event because he is a twat. He is a bully who tries to bully people around to feed his ego. Plays certain groups off against each other to try and secure himself a certain position.
Expect more of this psychotic behaviour this year as there are quite a few important MMT events coming up in the UK. That he will not have been invited. You can set your calendar to his attacks and bullying tactics.
11 comments:
Yes, they create money when they credit banks with interest if that's their policy, but other than that they are banks, which means they lend against assets. In that regard, there is no net creation of new financial assets.
Art Degree Murphy can’t stop using the figure of speech “money”…
How do you create a figure of speech “out of thin air”?
There are two ways that money is created.
[1] Bank lending
[2] Government spending (by monetarily sovereign governments)
There are two ways that money is destroyed.
[1] Paying back a bank loan. (Banks make their profits from the interest paid in addition to the principal that is being destroyed)
[2] Government taxation (by monetarily sovereign governments)
Fractional reserve banking is a myth.
Yes they create money, but there's a liability attached to it. A bad loan is a loss, no way around that. Losses should obviously be borne by the bank itself.
Except of course bankers can't create money out of thin air.
All they can do is discount something on the asset side. And that is normally a government security of some description.
The source of money is the Treasury, not the central bank.
Even when they are crediting interest they are discounting the ownership share, assuming they are not charging the interest paid as regulatory fees.
He's a twat.
When he doesn't get invited to any serious MMT launches or talks in the UK he lashes out like a child in a school playground. His latest tantrum against Warren was because of the new MMT book launch by GIMMS, that he had nothing to do with. Was entitled leading thinkers and his ego just couldn't help itself.
Every time he attacks the founders of MMT it is because he has been frozen out of some MMT event because he is a twat. He is a bully who tries to bully people around to feed his ego. Plays certain groups off against each other to try and secure himself a certain position.
Expect more of this psychotic behaviour this year as there are quite a few important MMT events coming up in the UK. That he will not have been invited. You can set your calendar to his attacks and bullying tactics.
He's arguing with people who believe deposits are necessary for loans.
Counterfeiters create money out of paper and ink. We don't see them making loans.
“ there are quite a few important MMT events coming up”
There will be hundreds of monetarist events over the same time…
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