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House Price Crash Forum


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Everything posted by Police

  1. You seem to be forgetting the deflationary pull of credit. When credit is turned into money it no longer has that attribute and normal economic activity now looks doubly normal. How much is created and destroyed each week? What happens when you alter the destruction of money in this equation.
  2. Read page 13. http://www.positivemoney.org/wp-content/uploads/2012/02/Full-Reserve-Banking-in-Plain-English1.pdf 1.X Trillion of national debt monetized in 15 years - multiplying the monetary base by at least 150% - not withstanding all the other spending they intend to do. And lets not forget all the dumping of currency that will occur during this period. What's that figure annualised?
  3. Positive money want to permanently monetize the whole national debt giving us minimum double digit inflation for god know how many years. It's a nonsense.
  4. Pedant mode on: not quite - the revenue is recognized as earned on the shipment date. You can sell, and invoice - but only when you have deemed to have earned (i.e. shipping finished goods), can you recognize the revenue.
  5. Of course - it's irredeemable if you don't have any debt. A non-point. No it shouldn't. The £10 only came into being because someone else owes the central bank £10. That fact that that person isn't you is irrelevant. It's an objective measurement of reality. Your subjective viewpoint is irrelevant. The £10 is a liability to the central bank because it will have to give up ownership of an income producing asset and receive nothing but nicely colored paper in return. The fact that that counter-party isn't you is irrelevant. If I came round your house and uprooted your apple tree and gave you a piece of paper as payment (as previously agreed) - would you not call that piece of paper a liability to your wealth. I would. It wouldn't matter in whose pocket the paper was before the final redemption.
  6. Last go. As you been told - you can settle debt held by the central bank. Yes he can. He takes your £10 and gives you a new one from stores. The very actual of the central bank accepting a bank note in exchange - demonetises it. It's accounting fact. The very act of distributing new notes as part of an exchange, monetizes it. It's accounting fact. There is no net movement. http://www.bankofengland.co.uk/banknotes/Pages/damaged_banknotes.aspx By taking your £10 and giving you another doesn't change his balance sheet one iota.
  7. How about answering the point in contention. It most certainly is an asset. If you have a £10 note, and are also in debt to the central bank to the tune of £10, the note serves as an asset in paying off that debt. Clearly an asset. It is also an asset to the central bank because it's return reduces its NIC liability.
  8. No, notes returned to the bank are not listed on the balance sheet at all. Even when they used to be - they were listed as a liability and asset at the same time, when held in the banking department. No. Your contention (in dispute) was that the Bank Of England is not in debt to anyone. This is wrong. The reserve balances are debts - evidenced by the fact that the bank cannot service a withdrawl request which causes the issuance limit to be exceeded. It can only do this when gifted that authority by the Government.
  9. It's there on the balance sheet. If Barclays want to make a withdrawl and the BoE refuse - what do you think the position of the High Court would be? "Sorry Barclays, you've been paid". Don't be ridiculous. Equally, if Barclays want to make withdrawl that would caused the issuance limits to be exceeded - the Bank Of England cannot do it. It is a debt. Of course - but the point is that the Bank of England cannot make this decision off their own back - and as it stands, legally, the reserves balances are debts. Do you call the liabilities of commercial banks, debts - because your logic can be applied equally there.
  10. The relevant Act is http://www.legislation.gov.uk/ukpga/1983/9/pdfs/ukpga_19830009_en.pdf With a change to the fiduciary issuance: http://www.legislation.gov.uk/uksi/1999/3228/pdfs/uksi_19993228_en.pdf The current fiduciary issue limit is £66.8 billion, set on 15th July 2009. I haven't found the parliamentary minute that set this limit but will continue looking.
  11. No. For a bank account: the bank account represents the BoE owing Barclays. That's why it's called a liability on the balance sheet.
  12. http://www.bankofengland.co.uk/publications/Documents/bankreturn/2012/121017cs.pdf It cannot create cash to infinity without the approval of the Treasury and Parliament. This is why Barclays cannot request all its balances as cash.
  13. Commercial banks don't have the means to pay their depositors beyond a certain amount. Do you call their liabilities money? Do you claim they have no debt? No, and it's no different for the BoE.
  14. But there is a limit to how much cash can be in circulation and all accounts are records of owed cash. While these accounts are full and final settlement between account users - they are not full and final settlement between the BoE and the account user. If Barclays wanted to hold all its "cash" as physical cash - the BoE could not legally oblige. Clearly wrong.
  15. No - the cash is full and final settlement. It's irredeemable and the most the BoE will do is hand you back another bank note. To receive an electronic credit, after handing over a bank note, you would be making a deposit.
  16. Unfortunately, not true. BoE electronic credit is debt for pounds notes - which the BoE cannot just print. There are fiduciary issue limits, currently around 60B, which leaves around a few billion in wriggle room.
  17. Farming doing really well too. Milk quotas ending next year and everyone gearing up. Ireland is far from being on its knees.
  18. http://moslereconomics.com/wp-content/powerpoints/7DIF.pdf Garbage.
  19. Moseler was not a banker, and most of what he writes is tripe.
  20. I guess other nationalised industries would appear in the national accounts - say coal mining.
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