Bank of England Blows the Whistle

moneyIf anyone thought that banks lend depositors’ funds instead of creating new money when lending, which then become deposits, they should read The Bank of England’s latest working paper No. 529, which explains how the creation of new money becomes a deposit.

Issued on 29th of May 2015, the paper clearly states what Modern Monetary Theorists have been saying for over two decades. It also restates its own quarterly bulletin 2014 Q1, Money Creation in the Modern Economy.

In a way, it is a somewhat surprising move that blows the whistle on the popularly held view that banks are essentially intermediaries between depositors and borrowers. Importantly, it states quite emphatically that the current text book approach, and what most people believe, is erroneous.

Read more at: The Australian Independent Media Network

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


Political and Social Commentary

Think Left

The purpose of Think Left is to present a view of politics from a left-wing perspective.

Round The World in 79 Days

Melbourne . Auckland . Houston . Orlando . Washington DC . New York . Madrid . Malaga . Barcelona . Geneva . Brig . St. Moritz . Paris . Brussels . Berlin . Pragua . Budapest . Zagreb . Ljubljana . Venice . Koto . Corfu . Valletta . Catania . Naples . Rome . Brindisi . Bangkok . Tokyo . Mt. Fuji . Kyoto . Hiroshima . Melbourne

The Mugwump Post

Australian Politics

Unions. Politics. And stuff.

Tracking Abbott's Wreckage

The AIM Network

The Australian Independent Media Network

The Extinction Protocol

Geologic and Earthchange News events

The Obama Diary

President Barack Obama ... photos, videos & a word or two


Turning the tables on spin

%d bloggers like this: