Currency isn't borrowed.
It most certainly is. Every paper dollar in circulation was first borrowed into the system by someone or something. There is no differentiation. Whether electronic, bookkeeping entry, or passed via paper token, all "money" created for at least the past 35 years has been borrowed into circulation. Why do you think they're called Federal Reserve Notes.
For whom are central bankers getting something for nothing?? Who is the beneficiary? Them? They line their pockets?
Yes, from every taxpayer by excessive taxation, from every borrower by usurious interest, and from every saver by inflation, the private owners of the central banks and the controlling shareholders of numerous commercial banks, certain multinational corporations, and most private foundations "line their pockets", and more.
This kind of non-thinking built upon the conspiracy under every rock theory won't help you get anything right. It is always evidence of lack of education.
No conspiracy is necessary, it's just the way the monetary system works.
"Education is a crutch with which the foolish attack the wise to prove that they are not idiots." - Karl Kraus (1874-1936), Austrian satirist.
I think you have private banks and federal reserve banks confused.
No, they have 99.9999% of the general population confused including (apparently) yourself.
Tell me, how does your borrowing theory of money creation square with Japan. They can't push on a string. Demand management is useless where there is no demand.
My borrowing "theory" squares perfectly well with Japan. Japan is in a near depression because few in the private sector will or can borrow. You are correct, they (Japan's banks) cannot push on a string...a string of their own making. Sure, the government can and does do the borrowing for the private sector, spends the money on endless public make-work projects, and illegally funnels the rest into private accounts, but it will not revive their economy. All they are doing is adding to their national debt and debasing their currency. If Japan's government weren't borrowing "money" into circulation from their central bank, there would be very little borrowing at all. Why do you suppose interest rates in Japan are at all time lows? Honey for the worker bees, but the hive has gone dormant.
You have to create currency in order to stimulate economy which has an ancillary effect of increasing the borrowings component of money supply.
By this reasoning, the world would collapse were it ever to go to a cashless system.
Where did you learn your socialist economics, Harvard?
That you can read these posts and glean socialism therein is really quite stunning. |
