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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

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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.

HowardPerhaps because supporting sovereign money is the "third rail" of an economists career. Why? Because money is power.Bernhard Lietaer asked Paul Krugman, “Why, with all your influence, don’t you tell people how the money system works?Paul replied, “Didn’t they warn you about not touching the ...

last month

HowardSo much of the new money created today goes into speculation instead of the real economy. If new money created by government was spent, lent or gifted into the economy for things people really need and use wouldn't there be little concern about inflation? Inflation occurs due to money going to thin...

last month

Lucian AerisIt looks like the report is only in German, but from the summary it seems that the Bundesbank's economists think FRB wouldn't necessarily provide more stability than better regulations. It appears to me that this is an attempt by the Bundesbank to gently nudge the debate away from the proposal to re...

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

April 2017

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

April 2017
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Money Creation & Interest: Is there enough money to pay off all the interest? (Part 2)

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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...

April 2017

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“. ...

April 2017

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...

April 2017
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galenvalThe problem with this example is that Bob is operating like a savings bank rather than a commercial bank. They are completely different. Savings banks, like Bob, lend out existing money. When the loan is repaid with interest, the money can be relent. Commercial banks don't do that. They create money...

6 days ago

Zack, Positive MoneyThanks for linking the Steve Keen article and the comments section there, it was an interesting read....

last month

Roger Glyndwr LewisTest Comment for Zack...

April 2017
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