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all money is NOT debt, but credit, and while it is true that a great deal of this came about as claims over debt (interest-bearing loans), much of it came about when banks pay staff; management; suppliers; shareholder dividends; and buy productive assets.

How much are banks away from counterfeiting the money with their (seemingly liberal) crediting as any "payment"? If they are even buying productive assets by crediting out of thin air, who wants to be a counterfeiter then? Don't they have to offer any assets for all of that? Or if everything is all right, couldn't we then stimulate bank crediting enough to produce enough demand in the way Baker suggests?!

If a private bank can spend money on productive people and assets in this way then there is no reason at all why a public bank should not do the same as an agent for the Treasury.

Ok, where are public banks?

The bottom line is that printing money/QE solves nothing - it simply exchanges one asset for another.

If we are just crediting workers for building a road, what do we exchange?

by das monde on Thu Oct 14th, 2010 at 06:18:36 AM EST
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