money as debt

How this would work depends upon where you are; in Canada, with only a few major banks, it is not that hard to arm-twist them to provide such services, and so a postal bank does not need to be set up. These are not investment recommendations tailored to the particular needs of an investor. "We cannot analyse a central government (with a free floating currency) like any other entity, such as a household.". 『アメリカの実業界において 超大物の何人かの人々はある事を恐れている. The way money is created by private banks as a debt is well explained in Louis Even's parable, The Money Myth Exploded, in which the economic system is clearly divided into two parts: the producing system and the financial system. By contrast, money is used to pay for things [emphasis mine - BR], and its value resides in a network externality – it … :) Doing so avoids subsidizing rich people and avoids the bad connotation of government debt. It could accomplish the role of debt free self-issued money backed by production, while at the same time have the common credit that gold enjoyed in most places of the world in past centuries. That dollar will disappear if it is used to pay down a (any) bank loan.You can see that I would support Lonergan's first quote (as printed here). This seldom happens. Whereas for Wray and MMT folks, it is taken for granted that there is always a tight link between the quantity of government-supplied money and the level of activity (tho the mechanisms for this vary) so the problem that debt-free money is supposed to solve simply doesn't arise. If reserves and T-Bills were the same, Greece wouldn't have a problem (it can issue T-Bills). However, since the systems continuously evolve, dumping some of the risk on the private sector does make sense.However, I can see a justification for the revival of a "postal banking system." The case of token money in the Canadian colonies. Expanded over a six-month period in 2006, it was Grignon's first full length animation project. As a result, it is no longer "monetary gold", it is "gold gold". This is the documentary ”Money as Debt” and explains how money works. (in Epoch Times archive as a PDF document), "Second Sunday Cinema announces free films for April 12", "Money is always personal and impersonal", "Découvrez le long métrage "Money as Debt" de Paul Grignon", Freedom Force International – Money as Debt: An Instructional Video that Gets a Flunking Grade 2007 June 7 (Google Cached), https://en.wikipedia.org/w/index.php?title=Money_as_Debt&oldid=959104123, Creative Commons Attribution-ShareAlike License, Debt-free Fiat money. A non-bank private sector entity cannot make such a claim – because it is not permitted to hold an account with the central bank.2. Brian says “A ten dollar bill is a perpetual claim on $10 in reserves (balances at the central bank … “. (People resort to barter when the previous monetary regime collapses.) And you do that by declaring that you will accept any Greek bond as settlement of Greek government taxes and charges at face value.That immediately puts a floor underneath the Greek debt market and ensures that there is always a demand for the stuff - in both the primary and secondary markets. In a previous article, we walked through a scenario in which a teenager, Billy, finds $1,000 in currency. I see no connection between the replacement of banknotes and the incentive to exchange currency reserves for creditary reserves.3. Here are my thoughts:Dollars are not a debt, they are a credit against tax debts. Since my previous job was to analyse government bond markets, I was not in a position to get worried about the moral overtones behind the terminology.As for your question about money creation by the Fed, generally speaking, the monetary base was entirely created by Fed purchases of Treasury securities -- in the modern era. From this standpoint, the debate is over. (Please note that the first wave of QE was different - the Fed bought or lent against private assets. Bank credit money is created in a variety of ways other than by bank lending. The private banking system is layered on top of government money ("net financial assets"), but there is little policy can do about that private money. Only little people repay debt. "Et dimitte nobis debita nostra sicut et nos dimittimus debitoribus nostris." In other words, just a special case within the spectrum of debt instruments. stories that were once popular. The way money is created by private banks as a debt is well explained in Louis Even's parable, The Money Myth Exploded, in which the economic system is clearly divided into two parts: the producing system and the financial system. There is no difference between the use of QE and its absence from the perspective of the private sector. The author may discuss strategies which are wildly inappropriate for retail investors. He prefaced his video lecture with a re-telling of The Goldsmith's Tale in animation form titled Money as Debt. They are conceptually different. Although it's rare, there are people who do have accounts at the Bank of England, and some other central banks. Thanks for these remarks Brian, with which I partially agree. Incidentally, the liability of the central bank to accept currency in payment of tax obligations is also contingent, because not all people possessing currency have tax obligations (e.g. There is nothing particularly special about banks in that sense.Banks make a profit on the flow of money because there is a job to be done deciding which projects get funded and which don't. This will expose Debt as you’ve never understood it before. I routinely pay for goods and services in stores using a credit or debit card. The only thing new with regards to QE is that the Fed had the crazy idea of increasing the size of its balance sheet beyond what was needed for required reserves. Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal, there is no human relation between master and slave. The fed can purchase treasury bonds at any time for its reserves(balance sheet). In the Canadian colonies (pre-Confederation), privately-issued tokens were the main form of currency used (since the Colonial authorities ignored colonist demands for tokens). Our assumption that only government can issue money (which is evidence of debt ) comes to our rescue. This weight may or may not bear any resemblance to what is implied by the face value of the coins. This is a basic creation of money. ", the two "principles" you identify are NOT mutually exclusive. Do their assets cover there liabilities? Digital money is the next technological evolution from the ancient manner of producing base metals of no intrinsic value, and later of paper fiat money. Beyond that the central bank should just run overdrafts to cover the liabilities that banks require. I don't know.I think positive money advocates raise important questions, but they go WAY too far with their ideas. The film presents Grignon's view of the process of money creation by banks and its historical background, and warns of his belief in its subsequent unsustainability. ⇒ Money As Debt（日本語字幕版） 反ロス同盟オリジナル翻訳 第一弾 『アメリカの実業界において 超大物の何人かの人々はある事を恐れている 彼らは知っている Monetary gold is similar to a non-financial asset since it has no liability attached. That way we're less likely to suffer from gov't administrative delays when we submit our huge debt loads for erasure.Gotta run , I've got a big credit line to max out.....Marko. Bank deposit totals are seen as an incorrect method of measuring the money supply. If you consolidate all sectors, yes you will wipe out all debts, and you would only be left with real assets. ("This animated feature, dynamic and entertaining, by artist and videographer Paul Grignon, explains the magical but twisted effects of the current system of debt-money in terms understandable to all. Money as Debt. I think the terms "assets" and "liabilities" are more neutral and accurate, as many financial assets are representations of contractual relationships, whereas "debt" connotes either a moral dimension, or power imbalance where the creditor has power to enforce the debt. The Canadian government tells people not to mail cash in, but if you went in person to their offices, you might be able to pay that way. ~ Mayer Anselm Rothschild, Banker Title 5 Money as Debt 1. there is a total of presumed money in the system of: the loans were made sequencially as were the deposits which confuses things. Money as Debt is a 2006 animated documentary film by Canadian artist[1] and filmmaker Paul Grignon[2] about the monetary systems practised through modern banking. "You can't put a price tag on the authority to collect taxes. In some countries, old notes are withdrawn from circulation, and so they have to be returned. ;), The "rich people" statement is something I disagree with.I have been slowly writing articles on the Canadian pension system. I agree that money could be thought of as a "negotiable tax credit"; but that still makes it some form of a liability of the government. This does not make gold an ideal form of money of course due to its fixed supply when society tries to converts some of its risk investments into "money" (risk free instruments) during a financial crisis. Thanks! Who does that anymore? It is used to cancel out an asset - taxed receivable.I do like using "liability" (or "financial liability") instead of "debt", but they are essentially the same thing. —Norm Franz, Money and Wealth in the New Millennium We are nearing the end of the debt-as-currency era. Should we think of the balance sheet as the Fed's reserves? is a burden on future generations who have to repay it, and that rational people will save money in order to repay the debt on the eventual day of reckoning. Congress could even direct them to do so.Separation of the fed and treasury is a good idea, as the power to issue currency assets should be done with a cool head and technically savvy. Money as Debt II: Promises Unleashed 1h 17min | Documentary , Animation | 2009 (Canada) A documentary that explores the baffling, fraudulent and destructive arithmetic of the monetary system that holds us hostage to a forever growing DEBT and how we might evolve beyond it into a new era. Debts are used to provided [sic] streams of cashflows to their holders, and their value resides in the debtors ability to meet payments. Moreover, I am just amazed how much I have learned in just 47 minutes. I studied economics for 6 years, saw your video, investigated, and was appalled at the extent that this game of banking and politics has taken. Mosler talks about it all the time since that's his game. If the interest rate is zero, it does not matter whether the government liability is a settlement balance or a Treasury bill. This drop in net debt gives a much different picture than the usual "Japan is doomed!" However, even if you decide that the monetary base is not "government debt," that choice has exactly zero operational impact on the analysis of government finance -- and QE still accomplishes almost nothing. They are not. (I think Warren Mosler has pretty much said the same thing.) It is also not a right, that I am aware of - or care about - for any other currency which I (or anyone else) uses. I think that's what QE is about.As far as I can tell, QE is the ONLY form of the fed issuing dollars that is not created as a loan. Debt bad, as Tarzan might say. "There's an explicit fact: Greece can issue debt but not money. "There is quite a bit about banking in MMT. Whether or not you consider "money" to be "debt" is pretty much a personal choice, akin to choosing your favourite genre of music. After the 1980s debt restructurings were completed the 1990s saw a new global increase in money, credit, and debt begin again, which again produced a prosperity that led to debt … The Fed creates money out of thin air and loans it to the US Treasury in the form of interest bearing debt instruments. How could there be that much money to lend? I have some older articles here (drafts from my book) which I think cover these topics. He has a longer article discussing his definition of money: ". Make an assumption that individuals and banks can not lend to themselves but allow government the privilege of lending to itself. However: 1. With this assumption, all money is evidence of government debt.But we still have a money-debt problem. As an Amazon Associate I earn from qualifying purchases. Which precisely illustrates the difference between liabilities & money. Credit theories of money, also called debt theories of money, are monetary economic theories concerning the relationship between credit and money. The Magic Money Tree is back, this time promoted by Zoe Williams in the Guardian. In other words, the interest cost for the government is almost exactly the same, regardless of QE. Certainly ice is water (only it is frozen) but certainly ice is NOT water because ice is hard (stiff like a rock). It is the connotation of debt as sin that gives it a bad reputation. The fed issues dollars but the treasury issues its own form of dollars as bonds.I would consider treasury dollars to be a form of debt for the treasury department, as they commit to redeem bonds for federal reserve dollars. The argument at present is that is best done in a distributed fashion by banks. Debt No 3: thin air money actually consists of an entirely artificial debt owed by the bank to the customer. I can pay for security purchases in my retirement account by selling a Treasury bill. Regardez MONEY AS DEBT 3_3 - shura91000 sur Dailymotion. He goes to his local bank and deposits it in a new checking account. 47min | Documentary, Animation | 2006 (Canada) The monetary systems practiced through modern banking. )Hyman Minsky wrote about these operations and their history, and I also talk about them in my book. And although I agree that a deposit is a liability of the depository (i.e. People need access to banking services, and private banks do not have a huge incentive to provide those services to the poorest. However if banks issue deposit liabilities to non-banks, and the non-banks hold deposits as assets to clear payment by transfer of bank liabilities, then bank credit money has properties of both money and debt. I have seen arguments that currency should be considered a form of equity, and not a liability; I am agnostic on that question. If a coin is underweight, and it can be shown that the issuer is the source of the defect, it is the issuer's responsibility to make the holder whole. Thus, the money of the US is based on debt. Money as Debt är en animerad dokumentär om monetära system, gjord av Paul Grignon 2006.Den handlar om det skuldbaserade monetära system som används inom världsekonomin idag.. Filmen beskriver det nuvarande monetära systemets historia och de grundläggande principerna bakom detta. Does ownership an instrument give someone a claim in bankruptcy proceedings? Money As Debt is a fast-paced and highly entertaining animated feature by artist & videographer, Paul Grignon. )2) Unless the banks start hoarding bills (negative rates...), the amount of vault cash is probably related to the needs of commerce, and so it is highly related to M1. This is a thesis I have previously defended in this journal. "Eric,MMT shows there is a simple solution. "Immediately following from this is that the debt-to-gdp ratio of the individuals and firms under such a government can be similarly considered irrelevant trivia , since unlimited quantities of defaults can simply be absorbed by the government , and then ignored.This is really a sweet deal , but I suggest we keep it to ourselves , just the same. Furthermore, the issuer is expected to redeem the coin at face value.If you "net out" the liability, all you are left with is a pile of metal, which has certain physical characteristics (weight, purity). )(In practice, everyone here is just plowing their money into housing, which will not end well.). Pictures of a Ukrainian Dream — Pepe Escobar, Australian labour market struggling with significant sectoral disparities, OTPP Acquires Brazilian Electricity Firm Evoltz from TPG, Some lessons in how to combat the Tory propaganda machine. 1. "It is my understanding that U.S. tax forms expressly state that the tax due must NOT be submitted in cash (currency). So when the government injects money into the economy and at the same time issues debt in the same amount, that is generally viewed as a bad thing. But I question how much treasury spending without QE can improve domestic economic health.Without QE, fed issued dollars are created as debt. Using a four sector model of the United States economy (Treasury, Fed, Aggregate Banks, Aggregate Nonbanks) then monetary gold would appear as an asset on the books of each sector with no matching liabilities. Although people may offer summary explanations of what they think money is, in practice, there are hidden assumptions about what drives the acceptability of money. And correct me if I am wrong, but is it not true to say that changes in M1 are determined to an overwhelming extent by those changes in retail deposits which are unassociated with currency movements?3. a short animated documentary film by Canadian artist and filmmaker Paul Grignon about the monetary systems practiced through modern banking But the scheme we have now is based on the assumption that the middle class are on their own to generate their retirement income. By creating the Job Guarantee, the government stabilizes private demand, and this should help keep the banking system on an even keel. When we add all the bank deposits, they total more than all the government debt. Debt is a word that many people are afraid of. The status of currency held by banks is different from currency held by the general public. Bank credit money is not simply a form of debt. Also, if the US government guarantees a private loan or makes a direct loan, and there is a default loss, then the government either collects taxes to offset the loss, or records a debit (decrease) of its net worth. Thus bank credit money and other investments in banks are bank liabilities which are legal evidence of debt.The federal government can run a negative net worth in perpetuity without any adverse consequences for society or for individuals in society. ....the central government with a free-floating currency cannot be forced to default......... the debt-to-GDP ratio of such governments is essentially a piece of trivia that can be safely ignored. Thus, the money of the US is based on debt. If in doubt, ask them. The debate so far has been entirely semantic, and therefore does not really have a "right" or "wrong" answer. I think the problem was that this violated various European laws. ⇒ Money As Debt（日本語字幕版） 反ロス同盟オリジナル翻訳 第一弾. The gold reserve system is fated to failure during a panic. In this article, I am interested here in the instrument - the bank deposit - and not why it has been created. This is because the negative net worth of the federal government is simply the difference between its recorded assets and liabilities, where society will permit the government to issue more liabilities than the value of its recorded assets.

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