Home » Articles by: Frank Van Lerven

Author Archive

Frank Van Lerven

Frank is our Research and Policy Analyst, and is responsible for our research on current events. Frank also leads our research in Public Money Creation and Quantitative Easing. Prior to working on the availability of credit under a Sovereign Money system, Frank also researched issues related to the 1844 Bank Charter Act and its implications for contemporary monetary policy. With a Research Master’s in Advanced Political Economy (cum laude) and a BA in African Development Studies, Frank is especially interested in how Western financial systems (and models) influence developing economies.

Setting the record straight: Sovereign Money is not Full-Reserve Banking

Screen Shot 2017-04-27 at 18.25.17

The German Bundesbank has recently released an interesting report on the role of banks, non-banks, and the central bank in the money creation process. We have a few issues with the Bundesbank article, however, the majority of the analysis is good. More importantly, the conclusions drawn from the report by news outlets and the blogosphere are misleading.

Marco SabaNew money or purchasing power will be created by the central bank when loans are made. The problem will be at the central banking level IF the new money is not accounted for as new cash in the cash flow of the central bank. I.e. full seigniorage will be withheld by the central bank and not given bac...

14 hours ago
latest comments - view discussion

Vince RichardsonHere is yet another way the banks punish those least able to afford it.https://www.theguardian.com......

4 days ago

Hugh BarnardThat's 'meet' not 'meat', though they may use it to put meat on the table....

2 weeks ago
latest comments - view discussion

Money Creation & Interest: Is there enough money to pay off all the interest? (Part 2)

Screenshot 2017-02-23 12.16.19

This is the second part of our article dealing with the argument that bank lending must lead to escalating debt because banks don't create the money needed to pay the interest on the debt. Part 1 explained how the wrong conclusions have been drawn from the oft-repeated ‘banker on a desert island’ analogy. We showed that it is mathematically (and therefore logically) possible for both the principal and interest of a loan to be repaid.

MarijkeAt this moment I'm lost and having a big headache, because I thougt that I started to understand the system. But now I am lost.My only hope is that Draghi as the biggest moneymaker and illusionist ever wil be dismissed, why he never should have been placed in the position of ECB as former GoldmanSac...

2 weeks ago

Roger Glyndwr LewisThe mechanism for the accelerated growth of indebtedness and corresponding monetary assets – a veritable infernal machine – is described in full detail in “The Money Syndrome” by Helmut Creutz.http://www.themoneysyndrome...The following graph is taken from the book “The Money Syndrome“. ...

3 weeks ago

Bob WelhamAn old PM blog from 2012 that attempts to illustrate the pernicious nature of our commercially issued, debt-based money system, using the maligned "desert island economy" thought experiment. There is no mention of the "is there enough money to pay all the interest" red herring. The real danger is sh...

3 weeks ago
latest comments - view discussion

Roger Glyndwr LewisTest Comment for Zack...

3 weeks ago

Gregory SchoenmakersThere is no question that banks get seigniorage from the money they create but not from the customer deposits which are a liability but from profits on the assets they acquire to back these deposits....

4 weeks ago

Marco SabaSeigniorage: The Honest Government's Guide to the Revenue from the Creation of Money http://leconomistamascherat......

4 weeks ago
latest comments - view discussion

d
c
back to top