The nature of money Essentially, money is a form of property. Your money is your money, mine is mine, otherwise money has no meaning. Money is property in the abstract. The most interesting example of money as pure property is the stone money of Yap: some large stones sank in the sea generations ago while being carried from one island to another; but they are still acknowledged as money. It is irrelevant that they are at the bottom of the sea; everyone knows who owns them. The stones are exchanged for other property – even though they sit on the seabed.
Banks create new money in massive amounts – always as debt. How does this work towards making financial predators rich and productive workers poor? Here are one or two examples.
Imagine a world where huge amounts of money are created out of nothing for private profit and destroyed again once profit is taken, so that new money can be created again (and again, and again) – for private profit.
Amber Rudd, who stood in for Theresa May on the BBC debate on 31st May had a new line of attack for Jeremy Corbyn, accusing him of believing in a ‘magic money tree.’ She told the audience, ‘there is no magic money tree’.
The following is a re-post by the expert on Sovereign Money and a member of the Positive Money's Advisory Panel, Professor Joseph Huber. In this piece, Professor Huber responds to the Bundesbank's recent 'Remarks on a 100% reserve requirement for sight deposits'.