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Bank of England is alarmed about the increase of personal debt

mark carney personal household debt

The Bank of England has been warned of complacency over the big rise in personal debt. In its toughest warning yet about the possibility of a rerun of the financial crisis that devastated the economy 10 years ago, the Bank of England admitted it was alarmed about the increase in the amount of money being borrowed on easy terms over the past year, reported the Guardian, 24th July 2017.

medialAxisAs you say, it doesn't tell us who is holding all this 'cash' (by which I mean deposits, not actual cash). But I heard on Radio 4 this morning that Warren Buffet now (8th Aug 2918) holds loads of 'cash' ($s of course), which is interesting given stock markets of late have been hitting all time highs...

2 weeks ago

Edward SmytheThose are very good points. The truth, as you say, is that banks only have to pay negligible interest to re-attract (as deposits) the money they've created (rather than stuffing cash under the mattress). And this is because, people understand their money in the bank is fully liquid (i.e. CB guarante...

3 weeks ago

medialAxisThanks for post that, you've done a good job. I find it difficult finding my way around the BoE's site, TBH."...those in the second paragraph are paying interest to those in the first paragraph..."Not sure that's the best way to view it given what we've learned about how the system works. Also, inte...

3 weeks ago
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Pat CusackMy reply seems to be stuck in "moderation"....

3 weeks ago

James MurrayIvo Mosely,Yes, I afraid you continued your denouncement of all things capitalist, the banking system, the inequalities arising and the unfairness of it all.But it is pointless pointing out a problem without at least making an attempt at providing the solutions.I do appreciate it was a well-research...

4 weeks ago

Pat CusackA very compact and persuasive explanation. Can you post a copy of (or link to) the original, please?...

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Roger Glyndwr Lewishttp://share.snacktools.com... I Made these interactive Quizes based upion the Positive Money Quiz By David Farady https://www.quiz-maker.com/... and the money creation Survey of MP´s https://www.quiz-maker.com/... The degree of ignorance paraded constantly since the General Election and during...

last month

Vince RichardsonI would tend to agree ,we have made much fuss about creating money,a lot less fuss about destroying money and hardly any time discussing whether there would actually be probably just the right amount of money in circulation, as that is a bit boring.Personally I can' t see us needing to tweak this mo...

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Marco SabaRussia opens her secret archive on the INTERNATIONAL MONEY TRUST: http://lit.md/files/nstarik......

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Bank Robbery: How to change the system

monetary reform

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.

SimknFurther to previous, creating the money as a loan rather than as Sovereign money, means it is retired from the economy as loans are repaid. This would be mildly deflationary, and deflects criticism from neo liberal economists who say the policy would cause inflation. The two big issues are how much ...

last month

SimonSome current criticisms of monetary reform :- Not enough credit will be created if commercial banks don't do it so there will be a recession (Anne Pettifor). This can easily be overcome if the Bank of England creates more as it knows how much is in the economy. The B of E only has the very blunt ins...

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