Thursday, October 7, 2021
Let's cut to the chase here. When any bank makes a loan, it is granting unequal access to the monetary machinery that defines an economy. Unequal access because one bank depositor must first earn money to put on account while the borrowing depositor only needs to have a consenting decision.
Sadly, the title of this post comes close to being a canard. In fact, the whole discussion about two very different bank actions, whether banks create money or use money owned by others, comes close to being a canard.
That said, how in the world did I come to this perspective shifting conclusion? It was after I wrote the following material discussing private banks in the world of real fiat money.
Monday, August 30, 2021
Advocates of the Modern Monetary Theory (MMT) emphasize that government never needs to default on it's obligations because it can always pay by using fiat money. What they intend to convey, although they may not realize it, is that they expect that government can pay using real fiat money that government itself creates. We will outline a conventional ontology, typified with a descriptive phrase, so that we can better understand the mechanics of MMT when making policy decisions..
Why is this important? MMT proposes government spending unburdened by limits of taxation, funded as necessary by the creation of money. We need a standardized way of describing the MMT vision of creating money, We'll propose a common sense catchphrase that starts the user down a pathway of common understanding.
Monday, August 16, 2021
Years back, a wealthy lumberman came into a small western valley and decided here would be a good place to start a large cattle ranch. There being no large cattle ranches in the area, he decided to buy up small farms. He proceeded to do this and built a ranch big enough to be noticed but not big enough to be self-perpetuating. Today the ranch is being subdivided for housing. Part has been sold back to the state for wildlife enhancement.