Banks Create Money from "thin air": An Honest Report on New Zealand TV
Some truth. Some narrative. Modern Monetary Theory?
This news item1 appeared on MSM around 2013; an early episode of the show Seven Sharp. Seven minutes of truth.
It’s a religion, currency creation. It’s all based on faith. Some quotes:
Banks are almost fully in control of the money creation process
- from IMF Working Paper (WP/12/202)
If you have faith that the money is there then it all works, and that’s what our system works on; it’s based on faith that the…system that’s in place…protects us…and we won’t go bankrupt
- economist Shamubeel Eaqub
Faith. Confidence. It’s a giant confidence trick, this ‘money’ creation business.
There’s also an odour of Modern Monetary Theory (MMT) in this story, without naming it, to fund large infrastructure projects. This is still being pushed today. In caricature, MMT economically justifies infinite state debt at zero interest. More ‘money’ created out of thin air. More currency debasement. More inflation, somewhere - house prices, consumer prices, where ever the new ‘money’ goes.
The lure of MMT is so-called ‘interest free’ debt. But there is no such thing as a free lunch, and that new ‘money’ doesn’t get its value from no-where. It steals a little bit of value from each of the dollars already in existence.
From interest.co.nz, 24 February 2024
As US Modern Monetary Theory advocates make their case in Australia, Gareth Vaughan explains the world through their lens and how it might go down in New Zealand
https://www.interest.co.nz/public-policy/126524/us-modern-monetary-theory-advocates-make-their-case-australia-gareth-vaughan
New Zealand Infrastructure Commission
What gets to Me is that money not only promotes psychopaths to power, but its ARCHAIC.
The Foundational Function of Money (article): https://amaterasusolar.substack.com/p/the-foundational-function-of-money
I think We should put that tool down!
The ONLY Tool (article): https://amaterasusolar.substack.com/p/the-only-tool