Fed and Bank of England is perfectly informed of how money is created and this why they have army of analysts that control it, so inflation stays at optimal level.
In fact inflation of 2-3% stimulates economic growth.
Personally, I don't see any problem with money being created through deposit and loan, as it is controlled by the central bank.
@yu1987 The consequences of a debt based money supply are that we are in a continual fight to refinance our economy forever until either the banking system collapses or people will not lend to the government anymore and the government collapses.
That is the mathematical inevitability of a system with more debt than money.
I am talking about stability.
Money is far to important to be private.
Check out a reform called the Chicago Plan and see what you think.
Having attended your lecture before, I found your theory of money multiplication to be overly simplistic, something you learn in the first year of macroeconomics. Insert a second constraint to you model - bank capital, and it is no longer valid.
From $10 it's impossible to create $100, unless every bank in the chain has enough capital to meet capital requirements imposed by regulations, market and rating agencies.
Hi Simon, thanks for this beneficial lecture, have you looked in to Islamic Finance, in Islam Interest is forbidden so it provides a good alternative for the financial system that we have at the moment.
@fredu89 Yeah, Islamic Finance is very interesting. I am of the opinion that interest is not the problem in terms of sustainability, debt based money creation is.
If you want to debate the ethical circumstances of interest, that is a different argument all together.
But to clarify I have no problem with interest under a system of stable money.
Check out the banking reform channel if you are interested in this
I have added more videos.
Search for Bill Still interviews Simon Dixon
Enjoy
Simon Dixon
StudentFinanceJobs 1 year ago
Check out the banking reform channel if you are interested in this
YouTube.com/user/bankingreform
StudentFinanceJobs 1 year ago
Here is the research that should have been done by me before the presentation.
1 000 000s = 11.5 days (12days)
1 000 000 000s = 31. 709 (32 years)
1 000 000 000 000s = 31 709 (32 000 years)
simon
StudentFinanceJobs 1 year ago
I meant deposit multiplication.
Fed and Bank of England is perfectly informed of how money is created and this why they have army of analysts that control it, so inflation stays at optimal level.
In fact inflation of 2-3% stimulates economic growth.
Personally, I don't see any problem with money being created through deposit and loan, as it is controlled by the central bank.
yu1987 1 year ago
@yu1987 The consequences of a debt based money supply are that we are in a continual fight to refinance our economy forever until either the banking system collapses or people will not lend to the government anymore and the government collapses.
That is the mathematical inevitability of a system with more debt than money.
I am talking about stability.
Money is far to important to be private.
Check out a reform called the Chicago Plan and see what you think.
StudentFinanceJobs 1 year ago
Having attended your lecture before, I found your theory of money multiplication to be overly simplistic, something you learn in the first year of macroeconomics. Insert a second constraint to you model - bank capital, and it is no longer valid.
From $10 it's impossible to create $100, unless every bank in the chain has enough capital to meet capital requirements imposed by regulations, market and rating agencies.
yu1987 1 year ago
@yu1987 The model just highlights how money is created, not an estimate of the Money Multiplier.
The Money Multiplier is available data.
The fact is 97% of money is created as debt, 3% debt free.
That is the important stat, rather than explaining what all economist know which is how money is created.
I believe money should be created debt free rather than privately through a money multiplier.
I don't believe any money should be created privately through constraints.
StudentFinanceJobs 1 year ago
Hi Simon, thanks for this beneficial lecture, have you looked in to Islamic Finance, in Islam Interest is forbidden so it provides a good alternative for the financial system that we have at the moment.
fredu89 1 year ago
@fredu89 Yeah, Islamic Finance is very interesting. I am of the opinion that interest is not the problem in terms of sustainability, debt based money creation is.
If you want to debate the ethical circumstances of interest, that is a different argument all together.
But to clarify I have no problem with interest under a system of stable money.
That is what The Bank Of England Act proposes.
Thanks for the comment.
Simon
StudentFinanceJobs 1 year ago