Money....How is it Created?

 

Blogger Ref Link http://www.p2pfoundation.net/Transfinancial_Economics


Unlike virtually all monetary reform groups Transfinancial Economics believes a more pragmatic approach towards banks, and corporations could be the way forward. Furthermore, it offers a powerful electronic methods for dealing with serious inflationary pressures in the economy.

RS.



The following data originates from the following

If Banks can Create Money, then why did Northern Rock run out of Money?

By Alistair McConnachie Some people who are opposed to our reform will claim that we must be wrong when we say that “banks create money” because, “If banks can create money, then they should never go bust.” This article was written with credit due (or a debt owed!) to Ben Dyson and the Positive Money […]
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How the Fractional Reserve System Works

By Alistair McConnachie This article is intended to provide Money Reformers with important background information on the fractional reserve system – and which may help them if they have to explain it at length in any kind of public situation. The explanations which we’ve extracted from the textbooks below, are clear and concise and are […]
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How Banks Create Money Out of Nothing

The following has been compiled by Alistair McConnachie, from mainstream economics textbook Success in Economics by Derek Lobley B.A. (London: John Murray Publishers Ltd, 1978 edition), which was part of the “Success Studybooks” series. It was intended to be “appropriate to the Economics syllabuses of many of the professional bodies such as … the Institute […]
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The Money Trick

At some unknown, but fateful, point in medieval history, a moneylender realised that the essence of a viable money system is confidence and that, once this confidence was established, a magical and very remunerative trick could be played. Typically, the moneylenders were possessors of a stock of precious metals, which they would loan out into […]
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How Private, Commercial, National and International Money is Created

The following was abridged by Alistair McConnachie, from the works of Michael Rowbotham The financial system currently adopted by all nations is often described as “debt based”, since the process of going into debt is relied upon almost exclusively to create and supply money to their economies. By the action of lending to borrowers, commercial […]
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Conference “Fixing the Banking System for Good” – Video

Blogger Ref Link  http://www.p2pfoundation.net/Transfinancial_Economics

Ref Positive Money
http://www.positivemoney.org/


A very interesting conference took place on 17th April 2013 in Philadelphia, USA.  Big senior figures in the economic, monetary, and financial worlds, including Adair Turner, Laurence Kotlikoff, Michael Kumhof and Jeffrey Sachs were discussing fundamental solutions to current global monetary and banking problems.
This was probably the first conference ever where the top academics were seriously discussing ending fractional reserve banking.

                        http://vimeo.com/64807284#at=0

Michael Kumhof, Deputy Division Chief, Modeling Unit, Research Department, International Monetary Fund, explained in very clear and straightforward way how exactly banks work and presented the Chicago Plan proposal.

“The key function of banks is money creation, not intermediation. And if you tell that to a mainstream economist, that’s already provocative, even though it’s hundred percent correct.”

His presentation starts at 1:02:12
The slides of his presentation are here: The Chicago Plan Revisited

Adair Turner, Former Chairman of the UK Financial Services Authority and Senior Fellow at the Institute for New Economic Thinking, gave a noteworthy presentation on “Money and Debt: Radical Solutions to the Challenge of Deleveraging”

“Fractional reserve banks create whole new level of danger. Because the fundamental fact is, that when people say  ”banks take savings and intermediate it to loans” – that’s not true.
One of the most fundamental insight is that banks simultaneously create new credit and new money ex nihilo.
And that is one of the most fundamental, important things for people to be taught, which economics undergraduates should be taught about the nature of how monetary economy with banks works.”

His presentation starts at 4:06:07

Laurence Kotlikoff, William Fairfield Warren Distinguished Professor at Boston University, on Limited Purpose Banking
His presentation starts at 1:49:42

Jeffrey Sachs, Director of The Earth Institute, Quetelet Professor of Sustainable Development and Professor of Health Policy and Management at Columbia University, on Implications for Global Development 

“Could we really have liquidity without fractional reserve banking? If we could, we might be able to address another degree of this problem.”

His presentation starts at 2:35:08