Moody's Assessment of Overvalued Australian Housing: Local analysts don't know how serious it is; Stark warning bells sound: Australians blind to impending financial Armageddon
Tweet Topic Started: 16 Jul 2013, 09:36 AM (10,591 Views)
In other words, the money supply never expands, is that what you are saying? Every credit matches every debit? There is the same amount of money now as there was 100 years ago?
Oh dear. I had a tiny little respect for you before that post. You have revealed that you have a fundamental ignorance of the meaning of the money supply.
Transfer transactions, like interest payments, always leave the money supply unchanged. What was one person's or entity's money becomes another person's or entity's money.
But the money supply (which only counts positive accounts and ignores negative ones) can increase or reduce. Loans increase money supply because the lender is considered to still own that money as well as the borrower. The money supply figures, M1, M2 etc, completely ignore money owed. You can get the money owed from the credit statistics.
So no, I am not saying money supply never increases. But interest doesn't increase it unless people borrow to pay the interest.
All money is issued as debt, so all money is borrowed, including the money to pay the interest.
Oh dear. Read your comment, go away and think about it. Then you will understand why you have it so wrong. If not just ask and I'm sure myself or some one else will educate you.
Oh dear. Read your comment, go away and think about it. Then you will understand why you have it so wrong. If not just ask and I'm sure myself or some one else will educate you.
Sure, please educate me Mike. Tell me how money is really issued.
Oh dear. Read your comment, go away and think about it. Then you will understand why you have it so wrong. If not just ask and I'm sure myself or some one else will educate you.
Catweasel say it always important for mouse to be the student.
Not the teach.
Because it make the assume that mouse is gatekeeper of a knowledge.
It all a very well.
If it teaching how to make mojito or tune its new the flat-screen TV.
But how about a abstract?
Such as monetary system?
How can mouse assign itself as all the know?
And that a fascinate about sandpit.
So many the armchair expert.
But like being dumped in a China and thinking it know what a hell the going on.
Sure, please educate me Mike. Tell me how money is really issued.
Banks create money as you say with a credit offsetting a debit, but a government can create money without the offsetting credit. Governments can also destroy money.
Most of the money is created in the banking system, so you are mostly correct.
Any expressed market opinion is my own and is not to be taken as financial advice
Banks create money as you say with a credit offsetting a debit, but a government can create money without the offsetting credit. Governments can also destroy money.
Most of the money is created in the banking system, so you are mostly correct.
Catweasel say mouse need to extend itself.
How about the Bitcoin? Is it the money? Or does it not fit into white picket fence mind?
Interest is a net cost to the economy that needs to be paid for by increased productivity. Without increased productivity, interest is purely inflationary.
Incorrect. Interest is a debit to the borrower and a credit to the lender (depositor) with the interest margin paying banker's wages and other costs plus some left over to pay bank shareholders. Every dollar of bank charged interest is accountable, taxable and just like any other service - the service of lending money.
“You Keep Using That Word, I Do Not Think It Means What You Think It Means” - Inigo Montoya
How about the Bitcoin? Is it the money? Or does it not fit into white picket fence mind?
If you and enough people find it tradeable then it is money to a limited degree, it just won't be as accepted as other forms such as cash. Digits on a computer screen can be money, as long as both parties accept them as money.
Any expressed market opinion is my own and is not to be taken as financial advice
Sure, please educate me Mike. Tell me how money is really issued.
Not all money is issued as debt, that statement is 100% false. If you do not know why then don't post on this topic as your knowledge on money supply is basic at best. Others have already explained to you the reasons, you just don't listen.
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