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Why Do The Papers Avoid The Subject Of Money Creation When Talking About Hpi?

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I'm sick to death of the newspapers giving a thousand and one reasons for high house prices without mentioning the actual reason why house prices shot up from 2001. Eddie George even admitted himself what the reason was and yet this seems to have been ignored. Are journalists really so thick or they just a part of a wider conspiracy?

So why do the papers avoid the subject of money creation when talking about HPI?

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Do you want to try and explain money supply to the average man/woman on the street without sending them to sleep and using less than 1000 words?

Edited by b0rk

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The mogul masters instruct the editors to spike anything which criticises the bankers/advertisers/etc.

I don't know how journalists look themselves in the mirror each morning. Got to earn their crusts, I suppose - but why don't they just go the whole hog and get proper sales jobs?

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I'm sick to death of the newspapers giving a thousand and one reasons for high house prices without mentioning the actual reason why house prices shot up from 2001. Eddie George even admitted himself what the reason was and yet this seems to have been ignored. Are journalists really so thick or they just a part of a wider conspiracy?

So why do the papers avoid the subject of money creation when talking about HPI?

....it's not just the money supply....BTL, generally, and second home ownership in the countryside and seaside which has developed it's own localised bubbles in areas of low earnings are responsible, also......this is the unacceptable side of property ownership........and of course GB as a second home owner is in this category with his Westminster Flat............now these elements of the bubble will be 'protected'........his interest should be declared and if ever there is a vote on the subject he should not be permitted to cast.......similar to his voting on matters pertaining to England......! :o

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Most people don't realise that banks create money as debt and that 95% of our money is created by private banks as debt. Only 5% of our money is printed by the mint. Banks essentially create money from thin air. And we pay back (the money they never had) plus interest. All banks are served by a central bank, so even if some money does leave the system, it's no biggy. Banks do not lend your money, and they do not lend their money. Debt is simply your promise to repay money they never had, hence why debt grows ever larger.

The Rothschild family amongst others made it all possible. Amschel Mayer Rothschild (1773-1855) said in 1838: "Permit me to issue and control the money of a nation, and I care not who makes its laws."

Interestingly, long-haired twit David De Rothschild just wrote the accompanying book to the Live Earth scam.

It really is crazier than any Hollywood film.

Click the 'money as debt' link in my sig.

Edited by Bushy Tail

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Do you want to try and explain money supply to the average man/woman on the street without sending them to sleep and using less than 1000 words?

Precisely. It simply isn't 'sexy' enough.

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Do you want to try and explain money supply to the average man/woman on the street without sending them to sleep and using less than 1000 words?

Mr Average man/woman on the street thinks money supply comes from a cash point just like milk comes from Tesco and not a cow. As long as this simple view remains the top 1% will own more and more.

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The whole thing is tricked along by money that is,

essentially, not real. Central banks create money ‘out of

thin air.’ The quantity of money is growing very rapidly,

all over the world. Everywhere you look, money is

increasing 2 to 20 times faster than GDP growth. (In

Zimbabwe, the increase is infinite...since the money

supply is growing by 1,000s of percent, while GDP growth

is negative.)

Can you get something real from something un-real? Does

something come from nothing?

We don’t know...

But what we do know is that there are a lot of phony

parts to this boom. In the West, art, stocks, houses -

they’re all going up. Just look at a chart of almost any

stock market in the world. Or a chart of housing prices.

Or a chart of almost any tradable asset class. Asset

prices are rising; and the people who own them feel they

are much richer. But is this increase real? Are these

assets actually worth more? Or are they merely being

teased up in price by a higher volume of money? Is a

Monet more attractive today than it was 10 years ago?

Not really. Does a house give better service? Is the

yield from a stock higher? The answer is no. Much of the

extra wealth that people think they have is un-real.

Meanwhile, back in the Homeland...and Britain

too...ordinary people are suffering their prosperity.

They have enjoyed more apparent wealth - bigger houses,

more vacations, more dinners out - but this is wealth

consumed, not wealth created. In order to afford to spend

more so much more money, they had to borrow. So their

real net wealth actually went down.

“Lost your pay slip? Call us...” say signs along the

highways in Britain. We had no idea what this meant. Why

wouldn’t people just ask their employer for a copy?

“Oh no...it’s a big scam,” MoneyWeek editor Merryn

Somerset Webb enlightened us. “There’s a whole industry

of people who provide fraudulent pay slips so that you

can get a mortgage to buy a house.”

http://www.dailyreckoning.co.uk/article/fi...others0345.html

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I had a discussion with my brother down the pub the other day, we both came up with recent stories in the press about our respective industries where the journo had completely missed the point and had made out that what they were saying was gospel. The truth is that most of the time they really dont know what they are talking about, especially when it gets to the detail. Its worth noting that the science editor of one of the major broadsheets has a degree in history, hardly a great start me thinks.

Edited by worzel

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Most people don't realise that banks create money as debt and that 95% of our money is created by private banks as debt. Only 5% of our money is printed by the mint. Banks essentially create money from thin air. And we pay back (the money they never had) plus interest. All banks are served by a central bank, so even if some money does leave the system, it's no biggy. Banks do not lend your money, and they do not lend their money. Debt is simply your promise to repay money they never had, hence why debt grows ever larger.

The Rothschild family amongst others made it all possible. Amschel Mayer Rothschild (1773-1855) said in 1838: "Permit me to issue and control the money of a nation, and I care not who makes its laws."

Interestingly, long-haired twit David De Rothschild just wrote the accompanying book to the Live Earth scam.

It really is crazier than any Hollywood film.

Click the 'money as debt' link in my sig.

thats not correct, private banks do not create new money, it is the boe that creates new money through the money markets. private banks simply facilitate between the public and the money markets.

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My sister has a degree in journalism. When I talk of fiat currencies and money supply growth her eyes glaze over. Then she says "how do you know all this stuff." FFS! This is the level of education in this country!

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thats not correct, private banks do not create new money, it is the boe that creates new money through the money markets. private banks simply facilitate between the public and the money markets.

Silly boy. You're talking tosh.

I have described fractional reserve banking. All banks have autonomy to create money as debt and a reserve ratio they must adhere to.

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Precisely. It simply isn't 'sexy' enough.

Sadly this is true.

When the readers of this forum (who by finding this site show themselves economically literate enough to have sought out contrarian information about house prices) learn about the astonishing con that is money, we are often fascinated and appalled.

But imagine "Joe Public" coming across an article about money creation in his morning paper. Opposite is a page about the latest Big Brother "controversy". Or Diana. Or Madeleine. Or immigration. (Not saying I don't think immigration's a problem but compared to money supply, it's at least pretty darn straightforward!)

Is he going to spend even ten seconds reading about money supply? Is he going to think "how astonishing that our society allocates its obligations and rewards according to this entirely abstract concept controlled by private corporations for their own gain"?

Or is he going to turn to the opposite page and munch on his Oatibix in ovine contentment?

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My sister has a degree in journalism. When I talk of fiat currencies and money supply growth her eyes glaze over. Then she says "how do you know all this stuff." FFS! This is the level of education in this country!

I know what you mean. I know its been said before, you get a much better insight into the world reading this site than anything in the mainstream media. People seem to think that with the internet and all the various news channels that they are getting more comprehensive news than ever before. The truth is that is has become more homogenised than ever before, it just has more outlets.

An example of the above is that I emtioned the money supply thing (which I genuinly dont know a huge amount about) to a friend (also a chartered accountnant) who works as an anlysys for a very large bank. I was shot down with corporate banker arrogance, and then low and behold, the money supply became the darling of the media talk on inflation. Suddenly everyone knows its always been an issue. Makes me laugh I can tell you.

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Silly boy. You're talking tosh.

I have described fractional reserve banking. All banks have autonomy to create money as debt and a reserve ratio they must adhere to.

i doubt you understand how the money markets and fractional reserve banking even works, and indeed many people on here seem to misunderstand it.

fractional reserve banking does NOT create new money. fractional reserve banking creates liquidity in the market. only the BOE can create new money.

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i doubt you understand how the money markets and fractional reserve banking even works, and indeed many people on here seem to misunderstand it.

fractional reserve banking does NOT create new money. fractional reserve banking creates liquidity in the market. only the BOE can create new money.

Oh come now, don't let facts ruin one of Bushey Tails, perfectly respectable hobby horses.

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fractional reserve banking does NOT create new money. fractional reserve banking creates liquidity in the market. only the BOE can create new money.

Isn't this bad enough on its own?

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Sadly this is true.

When the readers of this forum (who by finding this site show themselves economically literate enough to have sought out contrarian information about house prices) learn about the astonishing con that is money, we are often fascinated and appalled.

But imagine "Joe Public" coming across an article about money creation in his morning paper. Opposite is a page about the latest Big Brother "controversy". Or Diana. Or Madeleine. Or immigration. (Not saying I don't think immigration's a problem but compared to money supply, it's at least pretty darn straightforward!)

Is he going to spend even ten seconds reading about money supply? Is he going to think "how astonishing that our society allocates its obligations and rewards according to this entirely abstract concept controlled by private corporations for their own gain"?

Or is he going to turn to the opposite page and munch on his Oatibix in ovine contentment?

But if the Sun ran a front page headline that says ...

Banks create the money you borrow out of thin air

... people would be interested enough to read. Nothing more annoying than a millstone of debt around your neck when you realise the person who lent you the money simply printed it.

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But if the Sun ran a front page headline that says ...

Banks create the money you borrow out of thin air

... people would be interested enough to read. Nothing more annoying than a millstone of debt around your neck when you realise the person who lent you the money simply printed it.

I'd like to think you're right. But I'm not sure.

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iirc one of the rothchilds recently thanked the media for keeping them out of the public eye for decades

when you control the money supply you have lots of 'friends' ;)

Edited by dnd

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Most people don't care because it is irrelevant in the same way that the inner workings of the sun, the human brain, computers whatever are irrelevant. These things are facts, no amount of thinking can change that.

I don't see any particular problem with a debt based money system - like everything else it requires regulation to work properly and that is what is sadly lacking.

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i doubt you understand how the money markets and fractional reserve banking even works, and indeed many people on here seem to misunderstand it.

fractional reserve banking does NOT create new money. fractional reserve banking creates liquidity in the market. only the BOE can create new money.

This isn't sarcsim or baiting. I don't understand this topic. Could you explain the difference or link to an explanation? I presumed that the banks deposited money with the BoE and then were in turn allowed to loan money on a multiple of the deposit with the BoE.

Thanks.

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Also the boe is a private bank masquerading as a gov entity, so regardless of the reserve issue tails is correct either way. like what the hell does the distinction matter in any case sheesh.

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