Wednesday, August 2, 2017

Stop Money Creation by Corporate Banks

Central Bank Money


I am a nonconformist in my views about economics and Government. I support the view that the Sovereign Government should control the creation and supply of currency. I see money as 
a contract between parties to trade Goods & Service today in exchanged for a "promissory note"  that will purchase a choice of Goods & Service from other Sellers at a chosen later time. 

That promissory note can be personally held and traded or it can deposited in a Bank in an Asset Account as Money. It is balanced as a Bank Liability to the Depositor on demand.   The value of that money is determined by the availability of Labor, productive capacity and raw material supply to produce the desired Goods & Service. 
I also believe that the power of Corporate Banks to create new money in return for a  Borrower "promissory note" to repay legal tender money in the future should be ended. Money should only be created by the Federal Reserve Banks and loaned to Corporate Banks for lending to Borrowers based on the assets deposited in the Corporate Bank by Bank Customers.