And so this means government CAN ensure provision of basic necessities for all (including employment) ie, CAN eradicate poverty, by placing first claim on a portion of the nation's RESOURCES, as determined by the electorate.
The mistake of the Soviet Union was to claim ALL the nation's resources for government, thereby hindering individual incentive and 'aspiration'.
btw, I recommended you (today, to Chalmers) for Governor of the RBA......
And so this means government CAN ensure provision of basic necessities for all (including employment) ie, CAN eradicate poverty, by placing first claim on a portion of the nation's RESOURCES, as determined by the electorate.
The mistake of the Soviet Union was to claim ALL the nation's resources for government, thereby hindering individual incentive and 'aspiration'.
btw, I recommended you (today, to Chalmers) for Governor of the RBA......
Thanks Neil. I somehow doubt that I'll get a call from Jim...
RBNZ want's to have it's cake and eat it! both "connecting borrowers and savers" and new money creation in the same transaction. Clearly designed to deceive the lay-reader, since there is no "saver" in the transaction, though we are expected to believe that "Laura" is the counter-party to the loan rather than the seller of the house. https://www.rbnz.govt.nz/hub/-/media/project/sites/rbnz/files/publications/bulletins/2023/money-creation-in-new-zealand.pdf (p7/17)
"Bank deposits are created when banks connect borrowers and savers via the process of bank
lending. Likewise, bank deposits are destroyed when customers pay debt back.
Example: broad money creation through bank lending:
John wants to buy a house from Laura for $1 million, but must borrow $800,000 from the bank to
do so. The bank trusts John, so it gives John a loan, which becomes an $800,000 asset on the bank’s
balance sheet. The loan is a liability for John, but it is an asset for the bank. Simultaneously, the
bank gives an $800,000 bank deposit to Laura, which becomes an $800,000 liability on the bank’s
balance sheet. The deposit is an asset for Laura, but it is a liability for the bank. Laura also receives
John’s $200,000 deposit. In the process, the bank’s assets and liabilities have grown, and $800,000
of new broad money has been created by the increase in deposits (figure 5). John will pay the loan
back over time, which will gradually destroy broad money."
It's similar to watching a Ptolemaic astronomer trying to explain gravity.
Presentation very sharp, Steve. Like the contrasting slde-by-side slide.
CB autonomy must occur to break the cycle. It's the opposite now, which is the root of problem.
National broadcaster, workers compensation, courts are funded by legislature. Independence (relative) is maintained.
Politics is kyptonite in fiat money. Until it's out, it's no on CBDC for me.