EconomicStability's webcam video July 3, 2011 11:32 AM

EconomicStability's webcam video July 3, 2011 11:32 AM

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[ketch33]

I thought that the Glass Steagall act was supposed to accomplish the separation of money and credit or a store of wealth vs. speculative investment.

[EconomicStability]

@ketch33

G-S provided the separation between deposit-lending institution - like commercial banks - and investment banking-speculator types, a separation continually eroded after adoption.

That's another issue than we're discussing.with the Kucinich Bill's monetary reforms.

Here all real MONEY - United States Dollars are created by the government.

Once deposited - upon creation - banks and depositors are free to use them for any loan/credit transactions they want - but they can't create money..

[silversoul7]

In any case, I don't to have a long, drawn-out debate. Thank you for clarifying the difference between 100% reserve banking and full reserve banking.  My position on the Kucinich bill has now shifted from indifference to opposition. Thanks.

[EconomicStability]

@silversoul7

Well that's fine.

Sorry I wasted my afternoon.

I am reminded of the Kahlil Gibran poem on meeting the stranger and asking for directions.

It's obvious to me at this point that your move from indifference to opposition is as ill-informed as that stranger.

My screen name is joebhed.

EconomicStability is the youtoob channel of the Kettle Pond Institute.

See Friedman - Fiscal and Monetary Framework for Economic Stability.

Read The 1939 Program for Monetary Reform

Peace

[silversoul7]

Your comment about speculation is the most confused part of all. The idea that speculation would still happen but it won't be with my money is really no consolation at all. Because if the government sets the supply of money, and a lot of it's going to speculation, they'll have to make more money for the real economy, thus fueling the speculative boom. So I find your screen name ironic, as I see nothing in your plan that would establish "economic stability."

[EconomicStability]

@silversoul7

I said money COULD go to speculation, that's still a risk-reward proposition with real money.

Just that it could NOT come from bank-credits, cause ALL MONEY would be real money.

And, perhaps not finally, NO, the banks could NOT create any more money under the Kucinich Bill.

They could not. See section 101 (a) 2

(1) the authority to create money within the United States shall hereafter reside exclusively with the Federal Government.

[EconomicStability]

@silversoul7

Well, that video went out unintentionally as can be seen by the title, and I haven't even viewed it yet.

After reviewing your comments here I am less inclined to discuss it as well.

Under the Kucinich Bill, the government WOULD issue the money, and the banks, WOULD issue the credits/debts - sorry that you don't really get that, nor do you seem to have a wholesome view of what money is - sorry to say.

Apologies that I misunderstood or represented your full-reserve views.

[silversoul7]

Why do you say I have nothing against full reserve banking? That is precisely my objection. The only reason I was in any way supportive of it was based on the assumption that banks are never reserve constrained. I want to abolish the concept of reserves.

And no, I am not confusing money and credit. My position is to let government issue money and banks issue credit.