Economic Analysis, Theory

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medialAxisHere's a firm (Abra) that uses bitcoin to enable the unbanked, and banked, transfer money across the world [1] (I'm posting the link in quotes in the hope it doesn't load the page linked to). It's not available in the UK yet. I guess they use tellers to enable the unbanked to access the service. I d...

6 days ago

Vince RichardsonThanks for an interesting article.Confirms everything I have read in the last 5 years, my wife has worked for Barclays Corporate for the last 30 years and is nearing her retirement.She has seen the heyday of that kind of banking....

6 days ago

medialAxisYes, bitcoin needs be easy to use for the general punter else it won't be used, but they don't need to understand how it works under the hood, just like they don't need to understand TCP/IP protocol on which the internet depends. They can send emails with cat pictures, even videos, attached with out...

2 weeks ago
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Jim MI read the paper and am not much the wiser for it. There is a lot of talk about how modern banking works and a small section at the end on sovereign money but no real comparison to full reserve. Having read Andy's books and now this paper it would appear that both are very similar systems with the m...

4 weeks ago

PJMJim, the Sovereign Money proposal outlined in this paper is not a "full reserve" system. Rather, it is a "no reserve" system. Here is the URL for a paper by Prof. Joseph Huber, who is perhaps the world's leading expert on Sovereign Money, explaining the difference:http://www.sovereignmoney.eu/s...Pr...

4 weeks ago

Jim MAndy Anderson's books "currency" and "moving On" both go into this is good detail. They show how a full reserve currency in a state controlled bank could create full employment as it did in the past, before fractional banking and the tories took charge giving the banks free reign to print money....

4 weeks ago
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To be made sick by medicine: Quantitative easing and inequality after the financial crisis

Screenshot 2016-12-12 13.34.40

The sustenance of economic systems often relies on delicately balancing two perilous extremities. When looking at inequality, for instance, one finds that the lack of it will lead to an economy’s atrophy, while its excess may lead to unsustainable tensions. Since the end of the most recent financial crisis, developed countries have been inclined towards the latter scenario.

SimonAnd the banks themselves were increasing house prices by extending more credit. Eventually the system collapses as people cannot repay. At the height of the mania in 2004, I could have an auction in my front room, as people were desperate to buy my fairly ordinary house. Every property at the local ...

last month

Vince RichardsonThanks for the post,it is as we all expected.I did like this sentence," More recently, inequality has been rounded up in the lengthy line-up of factors accused of provoking the Global Financial Crisis"I concur with that view.Sub prime or selling mortgages to lower/middle income borrowers was a huge ...

last month
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Diana Whiteomg, wouldn't that help a lot of people and could be in time for Christmas the season of goodwill!...

November 2016

Michael Wallace EllwoodYou are right - the country needs "fiscal easing", or as we used to call it "government spending".However, the government could easily do this now - today, if it so wished, without changing the money system.It could either do it under the present (artificial) arrangements, whereby gilts are sold, ma...

November 2016

daviebobGreat summary of situation:Sent the same kind of thing to T. May the other day:-The exceptional stress to the British Economy caused by Brexit justifies exceptional action. The Government needs to regain control over the sovereignty of our money from the Banks and replace monetary easing with QE wit...

November 2016
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medialAxisAll money, bar circa 3%, is loaned into existence by private banks. We all know that now. But what about reserves? Are all reserves loaned into existence? If so, what do banks put up as collateral?...

5 weeks ago

Vince RichardsonA commercial bank could never buy gilts with commercially created money,they have to buy gilts with bank reserves.The BoE does not deal in commercial deposits, it operates all deals with commercial banks only via the reserve system....

November 2016

Vince RichardsonLast I checked the BoE held about 25 % of all gilts....

November 2016
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