"With all else being equal, all newly created money including...

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Countrywriter

528 Posts.

1237

22/04/21

09:15

Post #: 52639584
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Originally posted by Infose: ↑

"Debt based money literally means money added to the system is a debt to government that goes after taxes to service that debt. "

With all else being equal, all newly created money including commodity based money (gold, silver, etc) is money added to the system. Gold and silver from the Americas was brought to Spain to be minted into money, money that subsequently spread to the rest of Europe and the world.

All types of money can also be removed from the system.

Fiat money is one thing government debt is another. Taxes are not required to service fiat money because money pays a zero interest coupon. The money in your wallet or under your mattress pays you nothing. Moreover, when it comes to money the government's promise to pay you is paid with a newly created promise to pay.

"I have looked at MMT and consider it bunk unless we eliminate debt based money"

MMT cannot work otherwise, that is, MMT cannot work in a commodity based monetary system. Ability to pay debt comes from the ability to print money.

"I was fortunate to be in close contact to a former debt department trader / manager that also sat on the Board of banks and played a part in the creation of early derivative products. He shared a great deal about the dynamics of a debt desk and the workings of retail bank... and was lecturing central bankers about the debt markets."

By the looks it seems you have not learned much from him,

"\We live with a record level of enslavement of governments via the sovereign debt bubble (global), media control (they need their approval for survival in politics and the election cycle) and the UN which clearly dictates climate policy (IPCC) and health policy (WHO). In fact the modern world morphed with WW2 when Bretton Woods handed reserve currency status to the Fed, the UN was formed (quasi global government) and debt (money creation to fight the war) skyrocketed. With technocracy / automation we have become expendable from the elite perspective.."

The inescapable mixture of world history and politics with a flair of conspiracy theory.

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"With all else being equal, all newly created money including commodity based money (gold, silver, etc) is money added to the system. "

What an interesting definition of money you have Infose. Was it text books that informed you about "commodity based money"? Can you tell me how this works at the retail level when you go to Coles to buy groceries with your bag of iron ore or silver ingot? I am interested to hear how this commodity based money enters the banking system at the central banking level and how the banks deal with storage and distribution via ATM's etc.

"Fiat money is one thing government debt is another." This was another interesting statement you made. I would love you to set me straight about how new fiat money enters the banking system. Can you please explain?
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