The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Now seriously, money is the ability to mobilize economic resources, including mobilising oneself. Banks, by being given the ability to create money and award credit, get to decide who gets to do what they want, and who doesn't. Bush is a symptom, not the disease.
Capital is "Static", or "potential", Value consisting of "Money's Worth" in: (a) "Property" ("fixed capital"); and (b) obligations = credit ("working capital").
That's what Money SHOULD be and COULD be in a rational moneatry system based upon a "Clearing Union" approach and backed by "Guarantee Societies".
The toxic form of deficit-based Money currently in use is an interest-bearing "Claim over Value" issued - as Migeru puts it - "ex nihilo".
In essence it's the Bank taking my credit (promise to provide future value) and reflecting it back to me with their "guarantee". A Bank's "claim on a claim over Value" is a "double negative" giving a "false positive".
It is an illusion of Value or, in an analogy to anti-matter: "anti-Value".
Note that the whole business of "credit derivatives" is to all intents and purpose Banks outsourcing their "Guarantee".
My proposal of a partnership-based "Guarantee Society" achieves the same result, but without the costs and complexity. "The future is already here -- it's just not very evenly distributed" William Gibson
Jerome: It does not cost nothing [to create the principal of a loan] Nowadays, with regulatory oversight, it requires a capital allocation (8% or less, depending on the risk)." Chris: Note that the whole business of "credit derivatives" is to all intents and purpose Banks outsourcing their "Guarantee".
Chris: Note that the whole business of "credit derivatives" is to all intents and purpose Banks outsourcing their "Guarantee".
Also, what regulatory oversight are we talking about? Basel II? Bush is a symptom, not the disease.
by gmoke - Nov 28
by gmoke - Nov 12 7 comments
by Oui - Nov 2832 comments
by Oui - Nov 278 comments
by Oui - Nov 2511 comments
by Oui - Nov 24
by Oui - Nov 22
by Oui - Nov 2119 comments
by Oui - Nov 1615 comments
by Oui - Nov 154 comments
by Oui - Nov 1319 comments
by Oui - Nov 1224 comments
by gmoke - Nov 127 comments
by Oui - Nov 1114 comments
by Oui - Nov 10
by Oui - Nov 928 comments
by Oui - Nov 8
by Oui - Nov 73 comments
by Oui - Nov 633 comments
by Oui - Nov 522 comments