Stories
Slash Boxes
Comments

SoylentNews is people

posted by LaminatorX on Tuesday March 25 2014, @03:25AM   Printer-friendly

Anonymous Coward writes:

"http://www.theguardian.com/commentisfree/2014/mar/ 18/truth-money-iou-bank-of-england-austerity

Back in the 1930s, Henry Ford is supposed to have remarked that it was a good thing that most Americans didn't know how banking really works, because if they did, 'there'd be a revolution before tomorrow morning.'

Last week, something remarkable happened. The Bank of England let the cat out of the bag. In a paper called "Money Creation in the Modern Economy", co-authored by three economists from the Bank's Monetary Analysis Directorate, they stated outright that most common assumptions of how banking works are simply wrong, and that the kind of populist, heterodox positions more ordinarily associated with groups such as Occupy Wall Street are correct. In doing so, they have effectively thrown the entire theoretical basis for austerity out of the window."

 
This discussion has been archived. No new comments can be posted.
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • (Score: 5, Insightful) by The Mighty Buzzard on Tuesday March 25 2014, @04:19AM

    by The Mighty Buzzard (18) Subscriber Badge <themightybuzzard@proton.me> on Tuesday March 25 2014, @04:19AM (#20779) Homepage Journal
    They're not debt-based. I keep hearing that and it keeps being full of shit. They're based on fairy farts, rainbows, and magical unicorn dung; which is to say, absolutely nothing except the willingness of people to agree on an unbacked but convenient means of exchanging value.
    --
    My rights don't end where your fear begins.
    Starting Score:    1  point
    Moderation   +3  
       Insightful=2, Funny=1, Total=3
    Extra 'Insightful' Modifier   0  
    Karma-Bonus Modifier   +1  

    Total Score:   5