Why Can't the Government Create Money? Watch

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Polymath0
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#61
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#61
(Original post by Quady)
Who is going to buy the houses if the 'upcoming generation' can't?
Have you heard of the self-defeating government scheme "Right to Buy?"

When boom turns to bust, house prices will fall slightly, which means that young people will be able to secure a mortgage but will be burdened with a huge debt and bad economic conditions.

The only way to end the artificial boom and bust cycle is to separate money from debt.
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MrNotorious
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#62
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This is why. You know Hitler bypassed Jewish finance and began state created money and look what happened to him.Gadaffi was creating a new currency which is why America took him out.
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Polymath0
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#63
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#63
(Original post by Quady)
Really?

My pound coin in my pocket, where is the corresponding debt?
In your income tax and in the price of consumer goods.
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Quady
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#64
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(Original post by Polymath0)
In your income tax and in the price of consumer goods.
Neither of those of debts, income tax can be 0% and 'consumer goods' could mean anything - I've been paid to take consumer goods away before.
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Quady
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#65
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(Original post by Polymath0)
Have you heard of the self-defeating government scheme "Right to Buy?"

When boom turns to bust, house prices will fall slightly, which means that young people will be able to secure a mortgage but will be burdened with a huge debt and bad economic conditions.

The only way to end the artificial boom and bust cycle is to separate money from debt.
How many people use right to buy these days?

So young people cannot secure a mortgage these days? (what do you classify as young btw?)
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Polymath0
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#66
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#66
(Original post by MrNotorious)
This is why. You know Hitler bypassed Jewish finance and began state created money and look what happened to him.Gadaffi was creating a new currency which is why America took him out.
Indeed. It is rather fustrating that most people have no idea about this.
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Polymath0
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#67
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#67
(Original post by Quady)
Neither of those of debts, income tax can be 0% and 'consumer goods' could mean anything - I've been paid to take consumer goods away before.
The only reason you pay the income tax is because the government needlessly borrows money from a private banking cartel.

I have no idea what your last statement means, but it's probably irrelevant.
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Polymath0
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#68
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#68
(Original post by will2348)
But you do realise it would be very difficult for anyone ever to get a mortgage/loan if we went back to that system? And it would slow growth and progress down immensely probably causing a severe recession. And savers money is use to finance loans, but because of the reserve ratio, it causes a money multiplier effect. Which hence leads to faster growth thanks to freely available credit which is critical in any developed economy.
The money multiplier concept has been disproven by the Bank of England itself, as well as by numerous Central Bankers, including the previous one in the UK.
If you can't meaningfully engage with this fact, I'm speaking to a brick wall.

What do you want me to address about the debt? I don't see the problem with it? You pay interest for the risk and time value of the money - the money is not literally issued out of thin air, it's based on underlying deposits, just at a certain reserve ratio.

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The government borrows with interest. There is no need for this.
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Polymath0
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#69
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#69
(Original post by Quady)
How many people use right to buy these days?

So young people cannot secure a mortgage these days? (what do you classify as young btw?)
I won't be sidetracked. Stay on topic. If you see a flaw in the proposal, indicate it.
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Quady
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#70
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(Original post by Polymath0)
The only reason you pay the income tax is because the government needlessly borrows money from a private banking cartel.

I have no idea what your last statement means, but it's probably irrelevant.
No, there is income tax to pay for things it buys, it only borrows from a private banking cartel when it wants to spend more than it wants to tax.

It was a little, I've just no idea how 'consumer good's' can be a debt
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Quady
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#71
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(Original post by Polymath0)
I won't be sidetracked. Stay on topic. If you see a flaw in the proposal, indicate it.
You sidetracked yourself. Not my fault if you sidetrack yourself with gibberish like 'the young can't afford to buy homes' - absolute junk.

There isn't a flaw as long as people maintain confidence in the currency.
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TheTechN1304
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#72
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#72
quantitative easing?
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Quady
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#73
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(Original post by Polymath0)
The government borrows with interest. There is no need for this.
But pensioners would be sad if they didn't.
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Polymath0
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#74
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#74
(Original post by German123)
I have always thought about this question (Have not read allof this btw) but the simple answer is inflation. There is more stuff other thanthat but I think inflation is one of the reasons.
It's not true. This is blatant propaganda by the mainstream. Money creation can't automatically lead to an inflation of prices if it is created in line with rates of inflation, at the same pace as private loans are being repaid (under a full reserve system, of course.)
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Polymath0
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#75
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#75
(Original post by Quady)
No, there is income tax to pay for things it buys, it only borrows from a private banking cartel when it wants to spend more than it wants to tax.
If the government wants to borrow more than its tax reciept intake, who foots the bill? The taxpayer.

The entire system is a scam. And the majority of people are too economically illiterate to realise it, unfortunately.
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Quady
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#76
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#76
(Original post by TheTechN1304)
quantitative easing?
shhhhhhhhhhhh!

Stop pointing out inconvenient truths....
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Polymath0
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#77
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#77
(Original post by Quady)
You sidetracked yourself. Not my fault if you sidetrack yourself with gibberish like 'the young can't afford to buy homes' - absolute junk.
1. Emotional response.
2. No evidence.
3. Not relevant to the thread, which is specifically about the monetary system.

There isn't a flaw as long as people maintain confidence in the currency.
A flaw in the debt-free monetary system, silly.
But I don't think you actually know what you're talking about half the time. You're all over the place.
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Quady
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#78
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(Original post by Polymath0)
If the government wants to borrow more than its tax reciept intake, who foots the bill? The taxpayer.

The entire system is a scam. And the majority of people are too economically illiterate to realise it, unfortunately.
The government enacts the will of the people. If borrowing causes tax to rise more quickly than it does interest the people reap the reward.

But you are cleverer and more better informed fortunately.
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Quady
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#79
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(Original post by Polymath0)
1. Emotional response.
2. No evidence.
3. Not relevant to the thread, which is specifically about the monetary system.



A flaw in the debt-free monetary system, silly.
But I don't think you actually know what you're talking about half the time. You're all over the place.
1) Yes
2) Well I'm young and bought my place
3) You brought housing for the young into this thread, not me

Yes, it is a flaw.
If you say so.
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Polymath0
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#80
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#80
For the edification of newcomers, I'll repeat once again.

The Bank of England itself has already released a document titled "Money Creation in the Modern Economy." The government mints the coins which amount to 3% of the entire supply of money. 97% of the money supply is created by the private banking cartel out of thin air, to the detriment of the public interest.
Our taxes pay the interest on the public debt, our purchasing power is reduced through the servicing of loans and interest is embedded in the price of commodities.

The government can issue its own sovereign currency for productive uses and abolish the income tax. I urge you to check out the Positive Money website online, a think tank and campaign group based in the UK. Also, I'd strongly recommend reading articles and books by Ellen Brown.
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