The paradox of creating and saving cpi security money | Roger Wessman
Yesterday I attended in conversation reminded me of an argument that over the years I have come across many times. Allegedly, is a humbug, that the banks would finance lainantoa public deposits: Banks will be able to fund loans through the creation of money out of thin air! (To avoid any misunderstandings: I am not saying that the other Jussi Ahokas take this view. Guess I'm too stupid cpi security to understand what he is trying to say.)
Outrageous claim based on the fact that if you take a loan from the bank, for example, cpi security to build a house bank only record of the money you account. The bank's books are still in balance: the Bank of receivables (loans) and liabilities cpi security (deposits) cpi security have grown so much. The money is created out of thin air!
Every bank at this point sort of squeezes his head in amazement. Why do we have over the years used the effort to apply for funding by attracting deposits, issuance of bonds to international investors, cpi security or by making cpi security sure that we get the credit from the central bank?
The explanation cpi security is, of course, the fact that the money does not stay stored in the account where it is stored. The builder of the house to use the money to pay the contractors. The money flows to wages, taxes, purchase of building materials, etc. Construction Workers consume their reward. Money flows around the world and stay in the lending collection. The bank will have to finance the loan through other means, as in creating a deposit.
The tourist went to a small town to the hotel, left a hundred euro note via reception on the table and went out to see huoneita.Hotellinjohtaja took the money and went and paid his debt lihakauppiaalle.Lihakauppias paid the same money karjankasvattajalle.Karjankasvattaja their debts paid off debt with money huoltamoyrittäjälle.Huoltamoyrittäjä rushed to pay their debts on fees payable to the woman, whose services had been used by ., this hotel bills paid and money was via reception rooms tiskille.Turisti came from checking, but the rooms did not like, so he took the money over the counter and went elsewhere. Tourist cpi security shops is born with the hotel, but the money was debt-free and liikkui.Kaikista onnellisia.Mitä we learn from this? The economy revolves around the market and have the confidence that the debts are paid.
Only issue might help, at least for me to understand the subject better. Of course, only if you know how and you can better respond cpi security to it. The world is not, of course, never get better if one does not acknowledge or even be able to see the existing system, the circulatory system.
In contrast to other banks is the fact that the monetary base is not redeemable for anything else. Cash is basically a perpetual zero coupon bond with the central cpi security bank deposits cpi security can be transferred from the central bank (except by raising the cash advance). cpi security
If central banks do not lend money to banks, central banks could act by getting the necessary basic function of money as a basis for the fact that one party who has received some basic money to loan the money to the bank.
For example, instead of the central banks issue base money to lend them to banks, the central bank could lend money to the government is paying the costs would transfer the money to the banking system. cpi security
Think about that the bank account is a deposit (M1) is a bank created by the bond that is created by a mortgage against the agreement (the Bank's available). Bank of M1 euros to banks to exchange of contracts concluded by the Second Bank of the M1 bonds or nollakorkovelkaan then the central bank (M0), or such notes. Vouchers cpi security can not be changed to the upper M-liabilities (before was able to switch to gold).
My central point was that the bank can not count on that deposit created to finance the loan because the money will probably very soon will this deposit somewhere else.
I will say, however, that the bank creates a deposit because they are deposits which the loan has been funded not lost anything. Thus, the total deposits (money) cpi security has increased by the same amount as the Bank has granted cpi security a loan.
The problem cpi security is that commercial banks to the central bank grants credit without the need for reserves (endogeenisyys principle) when the collateral is in good condition näpynäpy credit the customer's account, after going to pick up reserves from the central bank = blown bubble.
Then, if you talk about vakavarausvaateista cpi security as the Basel III agreement, it is 4.5%. This is what the banks rotate so that the swing of credit risk rating system. For example, the German and Greek government bonds in banks' balance sheets is the same risk category 0, talking about ns.nollakamasta.
The state issues a Finnish markka-denominated government bonds for example, 6 billion marks. 100% state-owned bank (New Post Bank) means full of the Treasury issued by the loan. New Post Bank uses a credit or shekkilimiittiään, and create money just the same as the first example, the merchant bank.
So what happened? The Finnish economy was responsible for the loan summ
Yesterday I attended in conversation reminded me of an argument that over the years I have come across many times. Allegedly, is a humbug, that the banks would finance lainantoa public deposits: Banks will be able to fund loans through the creation of money out of thin air! (To avoid any misunderstandings: I am not saying that the other Jussi Ahokas take this view. Guess I'm too stupid cpi security to understand what he is trying to say.)
Outrageous claim based on the fact that if you take a loan from the bank, for example, cpi security to build a house bank only record of the money you account. The bank's books are still in balance: the Bank of receivables (loans) and liabilities cpi security (deposits) cpi security have grown so much. The money is created out of thin air!
Every bank at this point sort of squeezes his head in amazement. Why do we have over the years used the effort to apply for funding by attracting deposits, issuance of bonds to international investors, cpi security or by making cpi security sure that we get the credit from the central bank?
The explanation cpi security is, of course, the fact that the money does not stay stored in the account where it is stored. The builder of the house to use the money to pay the contractors. The money flows to wages, taxes, purchase of building materials, etc. Construction Workers consume their reward. Money flows around the world and stay in the lending collection. The bank will have to finance the loan through other means, as in creating a deposit.
The tourist went to a small town to the hotel, left a hundred euro note via reception on the table and went out to see huoneita.Hotellinjohtaja took the money and went and paid his debt lihakauppiaalle.Lihakauppias paid the same money karjankasvattajalle.Karjankasvattaja their debts paid off debt with money huoltamoyrittäjälle.Huoltamoyrittäjä rushed to pay their debts on fees payable to the woman, whose services had been used by ., this hotel bills paid and money was via reception rooms tiskille.Turisti came from checking, but the rooms did not like, so he took the money over the counter and went elsewhere. Tourist cpi security shops is born with the hotel, but the money was debt-free and liikkui.Kaikista onnellisia.Mitä we learn from this? The economy revolves around the market and have the confidence that the debts are paid.
Only issue might help, at least for me to understand the subject better. Of course, only if you know how and you can better respond cpi security to it. The world is not, of course, never get better if one does not acknowledge or even be able to see the existing system, the circulatory system.
In contrast to other banks is the fact that the monetary base is not redeemable for anything else. Cash is basically a perpetual zero coupon bond with the central cpi security bank deposits cpi security can be transferred from the central bank (except by raising the cash advance). cpi security
If central banks do not lend money to banks, central banks could act by getting the necessary basic function of money as a basis for the fact that one party who has received some basic money to loan the money to the bank.
For example, instead of the central banks issue base money to lend them to banks, the central bank could lend money to the government is paying the costs would transfer the money to the banking system. cpi security
Think about that the bank account is a deposit (M1) is a bank created by the bond that is created by a mortgage against the agreement (the Bank's available). Bank of M1 euros to banks to exchange of contracts concluded by the Second Bank of the M1 bonds or nollakorkovelkaan then the central bank (M0), or such notes. Vouchers cpi security can not be changed to the upper M-liabilities (before was able to switch to gold).
My central point was that the bank can not count on that deposit created to finance the loan because the money will probably very soon will this deposit somewhere else.
I will say, however, that the bank creates a deposit because they are deposits which the loan has been funded not lost anything. Thus, the total deposits (money) cpi security has increased by the same amount as the Bank has granted cpi security a loan.
The problem cpi security is that commercial banks to the central bank grants credit without the need for reserves (endogeenisyys principle) when the collateral is in good condition näpynäpy credit the customer's account, after going to pick up reserves from the central bank = blown bubble.
Then, if you talk about vakavarausvaateista cpi security as the Basel III agreement, it is 4.5%. This is what the banks rotate so that the swing of credit risk rating system. For example, the German and Greek government bonds in banks' balance sheets is the same risk category 0, talking about ns.nollakamasta.
The state issues a Finnish markka-denominated government bonds for example, 6 billion marks. 100% state-owned bank (New Post Bank) means full of the Treasury issued by the loan. New Post Bank uses a credit or shekkilimiittiään, and create money just the same as the first example, the merchant bank.
So what happened? The Finnish economy was responsible for the loan summ
No comments:
Post a Comment