Comments on: David Graeber: Bank of England confirms alternative theory of monetary creation https://blog.p2pfoundation.net/david-graeber-bank-of-england-confirms-alternative-theory-of-monetary-creation/2014/03/26 Researching, documenting and promoting peer to peer practices Sun, 27 Nov 2016 18:54:20 +0000 hourly 1 https://wordpress.org/?v=5.5.15 By: Paul Grignon https://blog.p2pfoundation.net/david-graeber-bank-of-england-confirms-alternative-theory-of-monetary-creation/2014/03/26/comment-page-1#comment-1578019 Sun, 27 Nov 2016 18:54:20 +0000 http://blog.p2pfoundation.net/?p=37807#comment-1578019 Money is created as debt, most of it on a schedule of repayment. It represents the future productivity of the borrower, most of whom will have to produce something of value to their fellow human beings in order to earn the money and extinguish it. Banks don’t have a magic wand… the borrowers do. They get to spend their future earnings now.

But, as the evidence shows , at all times, the amount of money in bank savings usually exceeds the amount in transaction accounts. Thus, by design, and just within the reported banking system, total principal debt always far exceeds the money available to pay it. A bank “loan”is actually a game of musical chairs in which constant growth of debt to banks is needed to keep the music playing.

http://paulgrignon.netfirms.com/MoneyasDebt/MAD2016/economists_play.htm

]]> By: willi uebelherr https://blog.p2pfoundation.net/david-graeber-bank-of-england-confirms-alternative-theory-of-monetary-creation/2014/03/26/comment-page-1#comment-657946 Sat, 29 Mar 2014 02:32:10 +0000 http://blog.p2pfoundation.net/?p=37807#comment-657946 Hallo Michel,

thanks for this text. But you lost the reference to the source.

Money creation in the modern economy
http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf

many greetings, willi
Quetzaltenango, Guatemala
willi.uebelherr@gmail.com

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