“Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves… When a bank makes a loan to one of its customers it simply credits the customer’s account with a higher deposit balance. At that instant, new money is created…”
the relationship between reserves and loans typically operates in the reverse way to that described in some economics textbooks. Banks first decide how much to lend depending on the profitable lending opportunities available to them…It is these lending decisions that determine how many bank deposits are created by the banking system. The amount of bank deposits in turn influences how much central bank money banks want to hold in reserve (to meet withdrawals by the public, make payments to other banks, or meet regulatory liquidity requirements), which is then, in normal times, supplied on demand by the Bank of England
Tweet Our current financial system has left us with the highest personal debt in history, unaffordable housing, worsening inequality, high unemployment and banks that are subsidised and underwritten with taxpayers’ money.
Today’s Jobs Report And The Cult Of Central Banking: Counting Angels On The Head Of A Pin While Main Street Flounders Print Less But Transfer More––Why Central Banks Should Give Money Directly To The People Central Banks’ Bubble Bursting, Sending Markets Down Worldwide Amend The Federal Reserve: We Need A Central Bank That […]
As we noted in yesterday’s posting, quoting Daniel Webster, “Power naturally and necessarily follows property.” Not surprisingly, then, politics naturally and necessarily follows power, which follows property, so that people who have property are...
Tweet Ever since that crisis, the Government and Bank of England have tried to encourage further consumer borrowing via further lending by banks. As former FSA chairman Lord Turner put it, this was a “hair of the dog” strategy for economic recovery, treating the cause … Continue reading →
So far more that 1800 people have emailed their MPs about our Dodds poll which revealed that 7 out of 10 MPs think that only the government and create new money; and, only 1 out of 10 MPs know that … Continue reading → The post What do Labour MPs...
In the September/October issue of Foreign Affairs, Mark Blyth and Eric Lonergan write: In the decades following World War II, Japan’s economy grew so quickly and for so long that experts came to describe it as nothing short of miraculous.
Bernanke Says Federal Reserve Is 'Focused On Main Street' Who Controls The Money? An Unelected, Unaccountable Central Bank Of The World Secretly Does The Federal Reserve Bank System Needs Reform Changing Role Of The Federal Reserve
“Confessions of a Quantitative Easer,” in which Huszar says that QE was always intended to serve Wall Street, not Main Street. Huszar’s assignment at the Fed was to manage the purchase of $1.25 trillion in mortgages with dollars created on a computer screen. He says he resigned when he realized that the real purpose of the policy was to drive up the prices of the banks’ holdings of debt instruments, to provide the banks with trillions of dollars at zero cost with which to lend and speculate, and to provide the banks with “fat commissions from brokering most of the Fed’s QE transactions.”
Recently we received an e-mail from one of our readers who was concerned about the moral decay of society. Specifically, he was concerned about how the United States Supreme Court keeps making decisions that are in clear conflict with humanity’s...