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"Where is Everybody?" The blog will continue here for announcements, messages and links to more substantive pieces. But those will... -
There are Gold Bugs and there are Bitcoin Bugs. They all oppose fiat money (hate the Fed and other monetary authorities) and follow some s... -
By Sergio Cesaratto (Guest Blogger) “The fact that individual countries no longer have their own currencies and central banks will put n...
This documentary has a focus on the creation of money. It does not examine the destruction of money.
ReplyDeleteConsideration of the destruction-of-money is essential to make a stable monetary system theoretically complete.
This documentary has a focus on the creation of money. It does not discuss the destruction of money.
ReplyDeleteA consideration of the destruction-of-money is essential if a stable monetary system is to be theoretically complete.
I’m not sure about Matias’s suggestion that the description of money creation in the video is in any way at odds with “mainstream”. The way I’d put it is that the fact that a dollar of debt is created for every dollar of money created by commercial bank is a dirty little secret that mainstream has always known about, but has chosen to keep quiet about.
ReplyDeleteAs to Chartalism, that’s the idea that fiat money gains its value from the fact that government demands that taxes be paid with it’s (the government’s fiat) money. That’s not really related to the pros and cons of “debt-money”.
Re Roger Spark’s suggestion that the video does not deal with the destruction of money, I haven’t watched the whole video, but videos of this sort (and there are dozens of them) normally mention that money is destroyed when anyone repays a loan to a bank.
As to the idea that there is something wrong with “debt-money”, I’ve argued that banks will NOT CHARGE interest on the debt money they issue (if they do their costing properly), but they WILL CHARGE for administration costs. And the administration costs involved in having private banks produce money are higher than having central banks do the job. My reasons are here:
http://ralphanomics.blogspot.co.uk/2012/10/debt-based-money-exacerbates.html