Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Some asset would have to be created to match against the liability. Of course, when a reserve banking system directly creates reserves, that is normally by dictating to the Treasury to issue bonds which the reserve bank holds. Where the reserve bank refunds income on bonds over interest back to the treasury, there is no net financing cost.

So they could be "warrants" from the EU or alternatively from the states whose accounts have been credited.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Thu May 6th, 2010 at 08:20:24 PM EST
[ Parent ]

Others have rated this comment as follows:

melo 4

Display:

Top Diaries

COVID19: Iceland

by gmoke - Apr 8
2 comments

PM Johnson Taken to ICU

by Oui - Apr 6
43 comments

Hurlers on the ditch

by Frank Schnittger - Apr 4
6 comments

Bordering on madness

by Frank Schnittger - Mar 31
49 comments

Occasional Series