Talk:Money creation

Added discussions

We must add to the equation the currency drain ratio (the propensity of the public to hold cash rather than deposit it in the banking system),the clearing house drain (the loss of deposits from the system due to interactions between banks), and the safety reserve ratio (excess reserves beyond the legal requirement that commercial banks voluntarily hold - usually a very small amount). Also, most jurisdictions require different levels of reserves for different types of deposits. Foreign currency deposits, domestic time deposits, and government deposits often have different cash reserve ratios.

Lets add more here

We don't see a discussion about "high powered money" that allows the creation "out of thin air", ten times the reserves depositied with the Fed as bank capital. This makes a multiplier approaching 100 times the orignial amount. Many deposits like checking accounts don't bear interest, plus bank float apears in two places at once and is counted twice as reserves for both banks. Through holding companies banks can eliminate the reserve requirements. under $2M requires no reserves. Under $45M requires only 3%. Coin, of course, is good money issued at no interest and doesn't count. We would have prosperity and little debt if it was all coin.

We have skipped entirely the discussion of the flip side when money is extinguished. When loans are repaid at comericial banks money dissapears. When the Fed gets repaid by the Government or when the Fed's Open Market Commitee sells bonds money disappears big time because commericial banks have to call laon to get their reserves in line. But wait, while the original pricipal money is gone, the obligation to pay the interest still exists. And guess what somebody forgot to create anymoney to pay the interest with. Seems like an ingenous way to collect all the wealth of the world to me.

There is a good video on the subject if you Google Money as Debt.

Let not forget all the other private money like travel checks, prepaid phone cards, Disney Dollars, etc. —Preceding unsigned comment added by 69.138.20.209 (talk • contribs) 05:16, 20 May 2007

I think following questions should be addressed in the article:

-who is the owner of the newly created money? -which fraction of the newly created money is equivalant to the obligation to pay back the interest? -when the economy is growing through the creation of profit, how this growth is distributed throught the money creation? or can be the total profit created in a certain period of time higher than the obligation to pay the interest?

Money base

The article does not discuss who creates money, and how the regulation of the finance industry inluences this.

If all lending is forbidden, or if all lending need a 100% reserve, then 100% of the money creation is made by the government and the central bank who then have a monopoly on money emission.

If no reserve are required, if the financial market is loosely regulated, then private agents, bamks or investors, create money at will, close to 100% of the money creation is made by private agents.

PLease not that the government can still control the amount of private money creation through the interest rate policy.

I think it would be very interesting to provide historical data on the ratio Base money/other money agregates in the USA and other countries, so as to show how historically the states have progressively privatized the money creation business.

Debt based monetary system

Debt based monetary system section should be added.
https://www.theguardian.com/global-development-professionals-network/2016/nov/05/how-a-new-money-system-could-help-stop-climate-change
https://www.youtube.com/watch?v=mzoX7zEZ6h4
Wikideas1 (talk) 05:37, 22 June 2024 (UTC)

Erne money

How to erne money esely 185.84.70.150 (talk) 16:01, 18 December 2024 (UTC)

Very good🤩 185.84.70.150 (talk) 16:01, 18 December 2024 (UTC)