“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
There’s no getting away from it. Banks create money out of nothing when they extend loans and then charge borrowers interest on this newly created capital. The result is an ongoing multi-billion pound/ dollar subsidy breaking the basic rules of capitalism. Galbraith was right. Governments should be more pragmatic. Politicians should stop hiding behind the skirts of ‘the market’ and make some judgement calls. As many have said, we need banking but we don’t need banks, at least not banks like this.
The legal basis for the reform of the Federal Reserve is found in the purpose for which the institution was originally established. This is stated in the preamble to the Federal Reserve Act of 1913, a sentence that, for some reason, is never...
The fun never stops around the Just Third Way. One of the funnest things (our grammar is as good as Keynesian Modern Monetary Theory, “MMT”) is the absolute refusal of many commentators to realize that the Just Third Way, being based on the binary...
Tweet This is Cheltenham and Gloucester local group’s first film showing so we do hope that you will come along with a friend or two and make it a success. After the film there will be time for discussion.
There is a widening inequality between the working poor and the non-working rich. The ideal that America’s growing inequality is often justified doesn’t hold up—instead, it’s undermining the moral foundations of American capitalism.
Pavlina R.Tcherneva Pondering here from my academic station Why has never before such a simple observation Caused more confusion and consternation Amongst the general population That the government is the currency-issuing monopolist Is not a ra...
Not as many jobs were “created” in March as anticipated . . . so (at least as of this writing) the stock market is going up. Had there been more jobs “created” than anticipated, of course, the stock market would be .
Michael Hudson says Greece’s Finance Minister Varoufakis is proposing austerity on the banking class rather than on the working class to balance the budget. SHARMINI PERIES, EXEC. PRODUCER, TRNN: Welcome to The Real News Network.
Tweet This workshop is to develop our confidence and fluency in explaining Positive Money arguments and proposal to the public. We aim to give our members the skills to engage the public at summer stalls and other events … or … Continue reading →...
Tweet Overview Critics have claimed that a sovereign money system, in which banks are not permitted to create money, would leave the economy with a money and credit supply that is rigid, inflexible and unresponsive to the needs of the wider … Continue...
Sharing your scoops to your social media accounts is a must to distribute your curated content. Not only will it drive traffic and leads through your content, but it will help show your expertise with your followers.
How to integrate my topics' content to my website?
Integrating your curated content to your website or blog will allow you to increase your website visitors’ engagement, boost SEO and acquire new visitors. By redirecting your social media traffic to your website, Scoop.it will also help you generate more qualified traffic and leads from your curation work.
Distributing your curated content through a newsletter is a great way to nurture and engage your email subscribers will developing your traffic and visibility.
Creating engaging newsletters with your curated content is really easy.