Tuesday, December 29, 2015

Money V Credit: I am not Alone!

Here is another blogger who has noticed there is a difference between credit and money.   Just so!
As with our inability to change the nature of the apple to an orange by simply calling it an orange, calling credit 'money' does not change the true nature of credit to money.  And I think this is the key to understanding Mish's response, and in the push to ban cash.  People have gotten so used to referring to credit as if it were money, they actually believe that credit and money are the same thing, especially so if that credit populates their deposit accounts or comes in the form of loans or even, from the Federal Reserve.  That is simply not the case because unlike money, all credit is someone else's debt, it cannot exist otherwise.  For example, the credit that populates your deposit account, is the bank's debt.
and this explanation!

Feel free to forward this by email to three of your friends.


Anonymous said...

I thought this was an interesting comment to another related blog article to understand the motivations and diabolical machinations of what is going on in the world:

I had a really good post written on this then I lost the lot, somehow, while I was looking for the film below. Oh well, maybe I will write it again later, but just briefly, the Right will say that Alan Dulles was fighting communism.

Now communism was evil, but professor Anthony Sutton wrote a book about how Wall Street bankrolled communism. Was communism a Right Wing conspiracy against progressive movements wanting more democracy? And the Western ruling class always coveted Russia's natural resources, and a revolution was a way the smash the Tsar's power, in the same way the West had used green revolutions in the Middle East to bring down independent non aligned nations.

The Right say they defend capitalism, but they deny it to ordinary people in the rest of the world. A wealthy 3% elite might own 97% of the land in a country, and by the definition of property rights, are allowed to sell all that land to rich Westerners. Micheal Hudson describes how rich westerners borrow money from Western banks, who make it out of nothing, and then buy loads of land in Africa to grow cash crops on for Western corporations, while the local people get thrown off their land.

Now the Western rich own most of the natural resources in the world, or own it via the proxy elite they control, or have corrupted. I wonder how much ordinary Texans would feel if they were dead poor while the Chinese owned everything, while working all the hours god sends never makes them rich?

The US never fought against communism, it fought against Democracy as the film below describes. It might but be right about everything, but most of it is.

JFK to 9/11, Everything is a rich man's trick.




We live in a wicked world indeed.

John Wiley Spiers said...

No. Mike Norman's MMT is still hegemon control of the monetary system, which changes nothing, and I am no fan of democracy, in which politics goes to the biggest liar. This is an anarchist website.


Anonymous said...

Here is a book recommendation:

"Killing the Host: How Financial Parasites and Debt Bondage Destroy the Global Economy" by Michael Hudson:

How financial parasites and debt destroy the global economy. Professor Hudson continues the discussion on the financialization of capital and its global effects. KILLING THE HOST exposes how finance, insurance, and real estate (the FIRE sector) have gained control of the global economy at the expense of industrial capitalism and governments. The FIRE sector is responsible for today’s economic polarization (the 1% vs. the 99%) via favored tax status that inflates real estate prices while deflating the “real” economy of labor and production. The Great 2008 Bailout saved the banks but not the economy, and plunged the U.S., Irish, Latvian and Greek economies into debt deflation and austerity. This book describes how the phenomenon of debt deflation imposes austerity on the U.S. and European economies, siphoning wealth and income upward to the financial sector while impoverishing the middle class.