Tag Archives: Borrowing

The best 3-minute video on the “creation of money” from thin air

Perfectly brilliant animated video:

  • on a British site
  • as “Plan B” for the British economy
  • suggesting to cut bonuses and benefits to bankers..

Too much common sense!…

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4 of the Most Important Quotes in Economics

I found these quotes on the Money as Wealth blog:

1. “…the actual creation of money always involves the extension of credit by private commercial banks.”
– Russell L. Munk, Assistant General Counsel, Department of the Treasury

2. “Money is created when loans are issued and debts incurred; money is extinguished when loans are repaid.”
– John B. Henderson, Senior Specialist in Price Economics, Congressional Research Service, Report No. 83-125 E

3. “Thus, the money that one borrower uses to pay interest on a loan has been created somewhere else in the economy by another loan.”
– John M. Yetter, Attornet-Advisor, Department of the Treasury

4. “Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon.”
– Robert H. Hemphill, Credit Manager of the Federal Reserve Bank of Atlanta

Scotland’s Council of Economic Advisors

This news item is the Scottish expression of the National and Regional Economic Councils that Gordon Brown MP announced in London as “new governance” is supposedly required.

Scotland’s C.E.A. in need of advice

In “The Scotsman” of Saturday 6th December 2008 we were introduced to the 11 members of Scotland’s ‘Council of Economic Advisers’ – an august body of Economics Professors, three business men and a former Bank Chairman, who were putting forward their plans to lift Scotland out of the economic mire and on to the road to recovery. The headline “Let’s build our way out of this”, flattered to deceive, because it was followed immediately by the panel’s recommendation that “the Scottish Government should BORROW money to fund a recession-beating public works programme”.

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