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Wise Words from Bryan Gould...

PostPosted: Fri Feb 06, 2015 11:30 am
by Screw
He tells us what we already know but are afraid to ask!

That can be seen very clearly when we look again at the seminal paper published in the Bank of England Quarterly Review in March last year. That paper conceded (the first such concession made by any major central bank) that 97% of the money in the UK economy was created out of nothing by the banks; a similar proportion would be found in many western economies, including New Zealand. [emphasis mine]

The whole basis of monetarist policy was thereby revealed to be a charade. Governments may cut spending and impose austerity, and may raise interest rates in a vain attempt to control the money supply (while doing unnecessary damage in passing to investment in the real economy), but the banks go on printing money as though there is no tomorrow. The greater part of that new money is created – not for productive investment – but for house purchase, and all of it for private profit rather than the public good.

This huge increase in the volume of money, most of it directed into the housing market and unbacked by any corresponding increase in real production, has inevitably created a huge asset inflation, a dangerous bias in the economy in favour of speculation and against productive investment, a major driver of inequality between those who own property and those who do not, and an economic policy that is totally ineffective in the hands of governments that do not have the slightest understanding of what they are doing.

As for the banks, their profits soar, the bonuses they pay themselves multiply in size, and their ability to create wealth out of nothing means that the asset bubbles that eventually burst to bring about the Global Financial Crisis are again being inflated as we watch.


http://www.bryangould.com/the-light-dawns/

Re: Wise Words from Bryan Gould...

PostPosted: Fri Feb 06, 2015 1:17 pm
by phill
money is created as dept

not value

or any form of realism .. its a huge conspiracy / rort


they then use the dept as collateral to create ( loan ) more money
the government only requires a holding of between 10-30 % depending on the country so for every dollar in its accounts a bank can lend out between ~ $2.50 - $8.50 at say @ 8% ... the 5% you thought was generous portion of your deposit is only about 10 % of what it makes

hugely interesting system if you want to figure it out

Re: Wise Words from Bryan Gould...

PostPosted: Fri Feb 06, 2015 2:24 pm
by Screw
How can a debt exist if the money that created it doesn't? If the money created doesn't exist then the debt doesn't either.

Remember that the NZ$ only has a value because the Reserve says it has. The Reserve is just a bunch of bankers and we all know just how much we can trust them.

Re: Wise Words from Bryan Gould...

PostPosted: Fri Feb 06, 2015 2:27 pm
by aardvark_admin
But Screw, they have a monopoly. Nobody else can go around printing money without getting pounded by government(s). Just look at what's happening with Bitcoin.

Re: Wise Words from Bryan Gould...

PostPosted: Sat Feb 07, 2015 8:46 am
by Screw
I know Bruce. Until people wake up we will have a continual bubble-bursting, each one worse than the one before.

Time to take back our currency.

Re: Wise Words from Bryan Gould...

PostPosted: Sat Feb 07, 2015 10:02 am
by phill
my email sigs i have used for quite a few years now



money is a concept we invented

when a concept we invented stops us from doing

what we want and need to do as a species

"its time to rethink the concept"



" everyone has a right to be happy "



" maybe i dont want to live in a toilet just to say i have a few extra dollars "



" i am so over this money thing .. what say we use something else "

Re: Wise Words from Bryan Gould...

PostPosted: Sat Feb 07, 2015 11:28 am
by Screw
Money has a purpose, it facilitates trading. The Chinese invented paper money and that allows finangling!

Back in the Middle Ages, some communities had a different system with money. At the start of the year each adult in the community was issued with one gold coin or lesser coins to the gold coin value, that they could use to trade with each other. At the end of the year all the coins were collected and re-minted into other coins and the issue started again. The idea was to stop some hoarding the coins as they had no value at the end of the year and forced those with spare coins to invest them in the community. The end result was a prosperous community!

We have a similar system but ours is privatised. The Reserve changes our banknotes every 5 years and takes the old ones out of circulation. That stops hoarding the notes as they have no value after 7 years. It forces people to put their excess notes into a Bank to save.

A banknote only has the real value of the cost of printing it, shipping it, and putting it into circulation. Take a $10 note, it costs around $1 to print (ours are printed in Sth Africa) and ship. It costs about another $1 to put it into circulation and about $1 more to keep it there. So that makes it's true value only $3, that's why we need so damned many to get by!!

Why do you think our notes are cut from a supermarket plastic bag with a fancy window in them and our coins are punched from the bottom of a Wattie's Baked Beans can? That alone should tell people that our money is worthless.

Re: Wise Words from Bryan Gould...

PostPosted: Sat Feb 07, 2015 7:28 pm
by Screw
Good flick Here.

Re: Wise Words from Bryan Gould...

PostPosted: Sun Feb 08, 2015 11:15 am
by CaptCraig
I'm afraid my country leads the useless paper printing cause. We know we are not manufacturing anything, or exporting anything, yet the "quantitative easing" continues. I am waiting for the inflation to blow sky high.

Re: Wise Words from Bryan Gould...

PostPosted: Mon Feb 09, 2015 8:45 am
by Screw
aardvark_admin wrote:But Screw, they have a monopoly. Nobody else can go around printing money without getting pounded by government(s). Just look at what's happening with Bitcoin.


Nothing to stop you from printing your own but you can't call it "Money or Currency", gubbies have a copyright on those names. Hardest part is convincing people that it has a 'Value'.

We already have alternative 'Money' in circulation but they are called "Tokens, Gift Certificates" etc.

So does the EU Cap'n. 'Nother crash coming?