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pjrmorgan

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About pjrmorgan

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  1. No they cannot do this. They can only use the money they have in funds. The money they have in funds comes from the member states. So in other words the debt they are using comes from the wealthier states share of the ECB. The rest in the case of Greece has come from the IMF. There is no QE.
  2. That the reason the inflation rate has risen in the UK is a result of QE. The rest of world according to you was not affected. The global price of goods could rise or fall this would either make the effect of QE inflation worse or dampen it depending on how the prices go.
  3. If it was bartered it would not have a monetary price.
  4. Aren't asset values linked to how much money is in circulation at that time. Thus when the money was lent or credit expanded the asset prices were high and when the money has to be paid back the prices fall. Thus it is something that is directly linked to what I am saying.
  5. Yes but that is money that is set against an asset in the future not the QE pump priming type of money creation that has been alluded to by the other posters that is only done by the BoE. There is not QE style money creation in the banks it is based on an asset in some form agreed?
  6. The government has been QE to cover the banking crisis. Other countries have not and the ECB cannot.
  7. All investments are based on the future. That is the point investment is about getting money where it is need then receiving it in installments at later dates.
  8. That credit expansion has to be paid back in the future. It is not a creation of money but taking money from the future and using it in the present.
  9. This is exactly the point I am making. The credit is based on future income and the repayment is based on that. If there is a surplus of credit in one period then it means the future period will not be able to pay it back. The short answer is base the return in the banking system on output not principal investment. That way people pay what is produced not what was produced. We have a principal investment based banking system, change it and you will remedy the situation. In relation to the expansion of credit. That merely takes money that is expected to be earned in the future and uses it in the present. This has the problem of reducing the money supply in the future and thus strangulates the repayment problem explained for two reasons more is owed and less is available in the future to pay it back. We have reached the period where we are having to pay back the credit of the past with a diminised income as a result of the over credit expansion. This is why things are collapsing now. The income of the present has fallen due to being spent on repayment of the credit generated in the past. And the credit that racked up in the past is huge meaning you have to pay back more with less. Make sense?
  10. What I am saying is there is no conspiracy the situation is something the bankers themselves do not understand. I think the problem with my answers is you are missing my points. I responded to the claim that the banks created money and voiced my opinion of why. There is nothing more to say.
  11. I really think you are mis understand the situation and also over estimating the intelligence of the Bankers. They really don't understand what is going on so I find it unlikely there is a big conspiracy.
  12. The problem is two fold. One the Bank the England does it estimation inflation by money supply and that is calculated in an incorrect manner. It makes it look like the banks are creating money. The other is the principal investment based banking system. You invest money into the bank say £10,000 that has to be paid back. If the money in the economy falls the assets the repayment is based on is not enough to repay the £10,000. This is the real problem we have a banking system that is based on paying back what was produced when the investment was made and not what is produced at the time of repayment. Do you see now? This is compounded by the estimations of money supply the Bank of England used when they add up all the credits in deposits etc. Read the article below. http://morganisteconomics.blogspot.com/2011/03/have-macroeconomists-misdiagnosed.html
  13. So you agree there is a matching principle. At least in a round about way?
  14. They are not creating any money. The funds the ECB has are basically investments of shares the member states governments have. They are merely calling from those investments or share ownerships to buy the debt.
  15. I still think the most important factor is international prices.
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