8 Nov 2017 1:04 am
I will restate what I posted earlier - money is simply a representation of value. Creating more money (creating more "storage" of value) only changes the ratio of money/goods & services, it DOES NOT change the fact that the ratio will adjust to its "true" value eventually.
To use Sgt. Dildo's example, the Federal Reserve credited the accounts of banks by buying securities from the banks and inflating their own balance sheets. He argues the Fed created money out of "thin air."
In reality, the money is created out of the future expectation/liabilities that banks will pay the Reserve back. Now where do you think JP Morgan Chase, Wells Fargo, and Bank of America will obtain this money from? The businesses and workers who will supposedly create all that value to justify the expansion of the balance sheets.
If you want to argue semantics (central banks electronically credit the private banks by adding in some numbers digitally), I suppose you can make such a trivial case, but the underlying rationale for "printing money" is a far cry from the implication of such a statement.
There are many reasons to criticize the current monetary system, this isn't one of them. Your efforts are better directed toward the actual exploitation and rent-seeking of financiers and capitalists.
To use Sgt. Dildo's example, the Federal Reserve credited the accounts of banks by buying securities from the banks and inflating their own balance sheets. He argues the Fed created money out of "thin air."
In reality, the money is created out of the future expectation/liabilities that banks will pay the Reserve back. Now where do you think JP Morgan Chase, Wells Fargo, and Bank of America will obtain this money from? The businesses and workers who will supposedly create all that value to justify the expansion of the balance sheets.
If you want to argue semantics (central banks electronically credit the private banks by adding in some numbers digitally), I suppose you can make such a trivial case, but the underlying rationale for "printing money" is a far cry from the implication of such a statement.
There are many reasons to criticize the current monetary system, this isn't one of them. Your efforts are better directed toward the actual exploitation and rent-seeking of financiers and capitalists.