Richard Werner: Banking & The Economy

Banks have a pivotal function in the economy, they are the main creators of the money supply. In granting or issuing so called 'loans' to their customers they create the money that is essential to make the modern economy work. In fact says Prof Werner: 'there is no such thing as a bank loan' he says what happens is credit creation, when banks make the money (credit ) needed out of nothing.
He explains how the system works, whereby, from a miniscule deposit of funds a huge amount of money is created.

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• Banking
• and
• The
• Economy;
• banking;
• banks;
• how
• banking
• works;
• money
• creation;
• supply;
• bank
• loans;
• creators
• of
• the
• lending;
• borrowing;
• credit
• no
• such
• thing
• as
• loan;
• Richard
• Werner;
• Prof
• Werner
• Southampton
• University;

[chotaboy66]

Who gives up lawful consideration of value in a purported loan ?

[chotaboy66]

@chelonia1663 Indeed you are correct mate interest is terminal , we are dealing with nothing more than modern day money changers who steal & launder circulation flogging factional multiplication off as money creation when really its a secondary consequence of the banks purposed obfuscation of our very own promissory obligations we have to each other .

[souplovesongs]

@kinasek balance sheet? The books are cooked of course; and then they tell us that it is toooo complicated for us to understand! hahaha!

[souplovesongs]

@kinasek 2 miles? per year? Two what per year? You try to make it more complex than it is, it seems. All the money stays in the banks digitally anyway. For the bank there's no difference if money is in your or my account, no? The velocity of transferring money to each other does not make a difference imo.

[RenardJouflu]

Euuuuuuuuuuuuuuuuuuh ! I'm Renaaaaaard ! As Iive in the forest, eat mushrooms and want to build a gold pyramid for my son named Fila, I need CA$H !

[whahas]

@kinasek What velocity does he imply and what velocity is observed in reality, according to you?

[whahas]

@kinasek Irrelevant example. We don't have a small economy. Where does the farmer gets his money from anyway? Cash (or just coins!) is like 3% of our money supply.

[whahas]

@kinasek No they don't. People use money digitally most of the time. Of all your money, how much of it do you use as cash?

[therealjakethesnake]

Thank you for uploading :)

[kinasek]

The exemple given by Mr Werner imply a velocity way higher than what is observed in reality. Read abount another concept : Money Supply. The velocity changes according to the type of money you're talking about (The different types of money are typically classified as "M"s)