@kellygerling @RenFlogging @NPR Government charters banks and outsources its own money creating powers to them.
Bank credit is denominated in dollars because our government essentially allows banks to peg the bank credit they to gov issued dollars.
By, among other things, clearing all payments at par w/$...
Bank credit is denominated in dollars because our government essentially allows banks to peg the bank credit they to gov issued dollars.
By, among other things, clearing all payments at par w/$...
@kellygerling @RenFlogging @NPR 3/. Also, you can take out a bank loan and then request government issued cash.
Thus converting your bank credit to government issued currency.
Your bank swaps reserves for cash to satisfy customer demand for cash.
Thus converting your bank credit to government issued currency.
Your bank swaps reserves for cash to satisfy customer demand for cash.
@kellygerling @RenFlogging @NPR 4/. Is this a good thing?
I personally think so.
As long as our government, and thus democratic input, leads the way in determining public policy.
Both by funding essential public goods itself. And forcing banks to serve public purpose when they issue loans
I personally think so.
As long as our government, and thus democratic input, leads the way in determining public policy.
Both by funding essential public goods itself. And forcing banks to serve public purpose when they issue loans
