Category Archives: Electronic money

@TEDTalks The Privatisation of the Creation of #Money @BjergOle

Ole Bjerg is an Associate Professor of Copenhagen Business School. He identifies beautifully the critical aspects of the creation of money:

  1. the difference between
    • Paper Money [Cash – about 5% of the money supply] and
    • Electronic Money [Credit – about 95% of the money supply]
  2. the negative consequences:
    • instability
      • banks issue money when the economy is booming and hold back otherwise;
    • inequality
      • interest is a ‘tax’ on money
      • with growing inequality based on the level of interest rates
    • concentration of power
      • how much money?
      • at what price?
      • for what purpose?
  3. Hence politicians appear to be impotent, as decisions are made in board rooms of banking institutions – outside democratic institutions.
    • the smart solution is an update of what Central Banks do with respect to PAPER money to INCLUDE electronic money;
      • all citizens should have accounts with Central Banks!
    • Commercial banks continue to
      • take deposits and lend it
      • as a LINK between people who save and who borrow.
  4. This is a SOVEREIGN system of money creation – reminding citizens to
    • understand the creation of money
    • participate in the political process of deciding WHO creates money.

 

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Cryptos vs Banksters [& the Bankers are Losing!] @clif_high What are @CurrencyNews @money #wealth?

This interview with Clif High illustrates an ‘interesting’ state of knowledge or the absence of understanding the essence of the original purpose of ‘currency’ as ‘money’ to facilitate trade:

  1. accumulating material wealth is priority;
  2. ‘currency’ is not a medium of exchange but a ‘store of value;
  3. electronic ‘coins’ are being created for that very purpose – preferably by web bots.

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