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Why Can't the Government Create Money?

The only thing stopping Government from taking back control of our money supply is the whole American Military. London is basically the money laundering capital of the world. If we where to take power away from our Banks we would also be sanctioned right away by the US.

If you have any idea how Putin was raised to power your realize he kicked out all our the oligarchs who had huge wealth in Russia. As a consequence of doing so Russia was branded as the big bad monster.

Reply 201

Polymath0

OP

11

Original post by BigItch

Some governments have done this by using quantitative easing there are some problems with it. One of the problems being that if you print too much it devalues money this is because it manufactures inflation which was never there to start with.

I've recieved this type of response throughout the thread. The problem is that it has zero explanatory power. You mention that there are some problems with creating and issuing money debt-free, then go on to mention only one problem which is highly abstract and barely original in content. The government could flood the economy with money, but that money wouldn't necessarily cause inflation if it is spent on a whole range of public projects, infrastructure and services that stimulate aggregate demand, since money spent on productive activities increases supply alongside demand. The only constraint on government spending that there ought to be are the physical constraints of nature, of human capital and of raw material; and the electorate can then exercise their democratic right in voicing their wishes and needs for funding, whatever that may be.

The creative power unleashed by the ability to simply create and issue money without a corresponding debt is extraordinary; a near utopia would be absolutely possible. The primary obstacle is the private banking industry who create money in the form of debt through their lending practices and cause asset-price inflation in the speculative property and financial markets. National governments have been completely subordinated to the private banking industry, when in fact the power ought to be in the reverse.

(edited 8 years ago)

Hyperinflation?

Original post by stemmery

Hyperinflation?

I depend what the money is spent on and if it goes into the real economy.

A good example of hyperinflation arguably by private banks and what not to do is house prices. Who basically throw money at a limited resource.

If you spend the money on something that will generate a demand in the economy for example infrastructure for example if we have a large scale nuclear power program which are my favourite example we can create a product everyone wants - electricity this increase the real economy mean the money does not change the value of each pound so it isn't inflationary.

Have a look at how money works:

http://positivemoney.org/how-money-works/how-banks-create-money/

The question I believe this forum (at the minimum) is asking is why does the government borrow money from banks which create it out of nothing but charges us for interest for essentially what are IOUs. When the government can do exactly the same as the banks but without the interest. Then if their is a real problem with inflation it can take money out of circulation via taxation.

Reply 204

#Ridwan

11

Original post by Quady

Who owns the shares?

I thought there was only owner of the shares - the Treasury Solicitor.

The Rothschild family.

Reply 205

Quady

20

Original post by #Ridwan

The Rothschild family.

*yawn*

No other jewz?

Reply 206

Quady

20

Original post by BigItch

Some governments have done this by using quantitative easing there are some problems with it. One of the problems being that if you print too much it devalues money this is because it manufactures inflation which was never there to start with.

Weird how inflation is so low then...

Reply 207

BigItch

1

Original post by Quady

Weird how inflation is so low then...

if you print loads of money it will make money worthless and bump up inflation you're a cretin if you think otherwise

Reply 208

Polymath0

OP

11

Original post by Quady

Weird how inflation is so low then...

He refers to asset-price inflation in the financial markets, which is where QE was aimed.

I've come to realise that the term inflation is just a buzzword employed by those who either lack understanding of the current monetary system (which actively creates asset-price inflation) or ideologically choose to avoid rational discussion.

The following post is a perfect example.

Original post by BigItch

if you print loads of money it will make money worthless and bump up inflation you're a cretin if you think otherwise

Not only does he opt not to respond to my explanation, but continues ideologically to repeat the same line rote learned from an incredibly abstract summary of how inflation works, devoid of any understanding comprising real economic functions and the monetary system.

(edited 8 years ago)

Reply 209

BigItch

1

Original post by Polymath0

He refers to asset-price inflation in the financial markets, which is where QE was aimed.

I've come to realise that the term inflation is just a buzzword employed by those who either lack understanding of the current monetary system (which actively creates asset-price inflation) or ideologically choose to avoid rational discussion.

The following post is a perfect example.

Not only does he opt not to respond to my explanation, but continues ideologically to repeat the same line rote learned from incredibly abstract summary of how inflations works, devoid of any understanding comprising real economic functions and the monetary system.

It can only be limited though it will cause inflation if you keep doing it.

It can and it does.

OP

Original post by BigItch

It can only be limited though it will cause inflation if you keep doing it.

What can only be limited? Who can limit it? What is "it?" Keep doing what? It would be helpful if you could express yourself clearer and more precisely. Otherwise there's no need for you to enter the thread.

Original post by Little Toy Gun

It can and it does.

I kindly refuse to take seriously such a display of assertion in the absence of argument or evidence. I assume you haven't even taken the effort to read the opening post.

Reply 212

BigItch

1

Original post by Polymath0

What can only be limited? Who can limit it? What is "it?" Keep doing what? It would be helpful if you could express yourself clearer and more precisely. Otherwise there's no need for you to enter the thread.

I kindly refuse to take seriously such a display of assertion in the absence of argument or evidence. I assume you haven't even taken the effort to read the opening post.

I have as much rights as you so I will tell you politely to start with if you don't like what i post you know where to go

Reply 213

Quady

20

Original post by Polymath0

He refers to asset-price inflation in the financial markets, which is where QE was aimed.

Like oil and gold huh?

Reply 214

Quady

20

Original post by BigItch

if you print loads of money it will make money worthless and bump up inflation you're a cretin if you think otherwise

Can you explain the lack of inflation right now?

If not, you're calling yourself a cretin.

because of this:

printing more money = inflation = money devalues = more money printed = inflation etc

Reply 216

United1892

12

Original post by CoolCavy

because of this:

printing more money = inflation = money devalues = more money printed = inflation etc

Only in extreme cases. Inflation is not inherently bad.

Original post by United1892

Only in extreme cases. Inflation is not inherently bad.

true, it isn't bad for savers and investors but for the average person the excess printing of money would be a problem :s-smilie:

Reply 218

Quady

20

Original post by CoolCavy

true, it isn't bad for savers and investors but for the average person the excess printing of money would be a problem :s-smilie:

How is inflation not bad for savers and investors? :s-smilie:

Inflation hits their return.

Its good for borrowers not savers.

Reply 219

United1892

12

Original post by CoolCavy

true, it isn't bad for savers and investors but for the average person the excess printing of money would be a problem :s-smilie:

Normally wages rise more than inflation so it's fine it lowers debts buts cuts into savings. The alternative of deflation is worse.

Why Can't the Government Create Money?

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