“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
On August the 19th we started an email campaign to highlight the startling results of the poll that showed that only 1 in 10 MPs understand that 97% of money is created by banks, we have encouraged all Positive Money … Continue reading → The post...
Is the stock market still plunging? Or is it rising? Is this the beginning of the end? Or is it the end of the beginning? Are you pro or antihistamine? Is it colder in New York than it is in the summer?
A short time ago we got a question about Ayn Rand’s “objectivism.” Cutting out all the adjectives that made it rather clear that the questioner didn’t care for Rand’s philosophy, we had to ask, what, specifically, did the questioner object to?
Modern monetary theory ( MMT or modern money theory), also known as neochartalism, is an economic theory that details the procedures and consequences of using government-issued tokens as the unit of money, i.e., fiat money.
ves here. The excuse that Deputy Attorney General Juan Cole offered for DoJ's failure to prosecute financial fraud, that they were overmatched by "rocket science" isn't just pathetic, it's a flat out lie.
Paving the Way for a Sustainable Recovery The UK’s economic recovery relies on ever-rising levels of household debt, meaning that it is ultimately unsustainable. However, the process of Sovereign Money Creation can make the recovery sustainable by providing another source of spending and income in the economy.
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 →
A serious depression is pending as a result of austerity, says Professor Michael Hudson, October 17, 2014 SHARMINI PERIES, EXEC. PRODUCER, TRNN: Welcome to The Real News Network. I’m Sharmini Peries, coming to you from Baltimore.
On October 17, 2014, Greg Robb writes on Market Watch: Federal Reserve Chairwoman Janet Yellen said Friday that she was “greatly” concerned by the extent and continuing increase in inequality in the United States.