Endogenous Money: BoE shoots the Gov 'Austerity' Fox

[Blagsta]

Ofcourse, the cabbage market would still be subject to supply and demand. But you wouldn't have some banking bastard sabotaging the price every week ... or hoarding cabbages

Are you claiming no inflation under a gold standard?

 

[Lurcio]

Thats inflation, I think it has gone right down now & nothing really to with the type of money we have. You seem to be blaming the money? Its not the fault of the money, having different money won't change the far too unequal distribution of wealth, that is the problem in this country, not the money itself.

You see no consequences in allowing the privilege of creating money being vested with a handful of elite financiers??

Before the financial crisis in 2008, the BoE balance sheet stood at a few billion in the red. It now stands at over £1 trillion in the red. Where do you think this money went?

I know you and I didn't get it. Might I suggest you ask the banks that were the recipients of this credit - but don't expect them to tell you what they've done with it.

Here's a clue: I notice that house prices continue to defy economic gravity!?

 

[frogwoman]

And you trust the bank of England because........

 

[Blagsta]

And you trust the bank of England because........

He/she appears to be ignoring awkward questions.

 

[Lurcio]

Are you claiming no inflation under a gold standard?

I'm claiming price stability ...

 

[frogwoman]

He/she appears to be ignoring awkward questions.

Must be those pesky vested interests again

 

[Lurcio]

Hmmm - when you put it that way, using a perishable foodstuff as currency might be good for liquidity in the economy...

If its a choice between digital credit/paper and cabbages - I'll take the cabbages.

 

[Blagsta]

I'm claiming price stability ...

What happens to prices when gold supply is restricted? Or when there's a gold rush?

 

[Blagsta]

If its a choice between digital credit/paper and cabbages - I'll take the cabbages.

I'm sure you'll be telling your employer tomorrow.

 

[8ball]

I'm claiming price stability ...

Except for those times where the production of gold and economic productivity are badly mismatched.

 

[Lurcio]

And you trust the bank of England because........

I'm not claiming we should TRUST the BoE ... I'm merely highlighting the implications of some of the things they've been doing. Moreover, its stuff that they've now started to admit in public

 

[Blagsta]

I'm not claiming we should TRUST the BoE ... I'm merely highlighting the implications of some of the things they've been doing. Moreover, its stuff that they've now started to admit in public

Who do you think they're right?

 

[frogwoman]

Its the zeitgeist amongst an elite class of economist and financier ...

Who do you mean by this?

 

[Lurcio]

Except for those times where the production of gold and economic productivity are badly mismatched.

Thats not the fault of the gold ... its the f***wittery of the politicians/economists that set the rates

 

[Blagsta]

Shall we cut to the chase? Protocols of the Elders of Zion, Lurcio ,What's your opinion?

 

[8ball]

Thats not the fault of the gold ... its the f***wittery of the politicians/economists that set the rates

Well, I wasn't blaming the actual yellow metal. So if there is a lot more gold coming in than there is economic productivity you would presumably hoard the gold somewhere?

 

[Blagsta]

Thats not the fault of the gold ... its the f***wittery of the politicians/economists that set the rates

Set the rates of what?

 

[SaskiaJayne]

I notice that house prices continue to defy economic gravity!?

This is supply & demand, due to lack of building we have a shortage of houses. Yes I know we have 1000s of empty properties but its for governments to decide to requisition these properties to house the homeless, nothing to do with money. For a while the housing market was stuffed because banks reverted to the pre 1980s idea that you don't lend unless the borrower has a reasonable chance of repaying & a 20% deposit does show a bit of commitment. However this mean't nobody could buy houses & government ideology precludes mass council house building so it decides to 'help to buy' by using taxpayers money to underwrite private loans. Again, government. Nothing to do with money. To change things you change the government not change the money.

 

[frogwoman]

Also why is only financial capital at fault and not productive capital?

 

[Blagsta]

This is supply & demand, due to lack of building we have a shortage of houses. Yes I know we have 1000s of empty properties but its for governments to decide to requisition these properties to house the homeless, nothing to do with money. For a while the housing market was stuffed because banks reverted to the pre 1980s idea that you don't lend unless the borrower has a reasonable chance of repaying & a 20% deposit does show a bit of commitment. However this mean't nobody could buy houses & government ideology precludes mass council house building so it decides to 'help to buy' by using taxpayers money to underwrite private loans. Again, government. Nothing to do with money. To change things you change the government not change the money.

Does money exist outside of social relations?

 

[Lurcio]

Who do you mean by this?

Just another way of saying that endogenous money mechanics (as highlighted in the article) has become a popular method of money creation amongst central bankers and some economists.

 

[frogwoman]

No recessions before they abolished the gold standard. Someone ring up the Treasury as I'm sure they haven't considered this before.

 

[Lurcio]

Also why is only financial capital at fault and not productive capital?

Just clarify the two for me ... ta

 

[frogwoman]

Just clarify the two for me ... ta

Financial capital = banks and financial services
Productive capital = production of things (cars, food, etc)

 

[Lemon Eddy]

I think that arguing for a return to the gold standard is missing a trick. If we returned to a silver based currency we'd have absolute price stability, and a means of making up colloidal silver whenever we liked. Wealth and health sorted!

 

[Lurcio]

What happens to prices when gold supply is restricted? Or when there's a gold rush?

Shall we cut to the chase? Protocols of the Elders of Zion, Lurcio ,What's your opinion?

Not really my bed time reading, sweetheart. But since you introduced the topic to me, I'm all ears ... ?

 

[frogwoman]

I'm sure someone better at economics than I am can come along and give a better definition (love detective? )

 

[Blagsta]

Not really my bed time reading, sweetheart. But since you introduced the topic to me, I'm all ears ... ?

You're the one making claims about the gold standard.

 

[Lurcio]

Set the rates of what?

The rate of £ or $ to the gold ....

 

[frogwoman]

Maybe I have got it wrong but some of the phraseology you are using suggests that you have 'woken up'