3 ms·
Banks just provide a service. IMO, cultural norms are the problem - people have overbought housing chasing various subsidies. People are behaving as-if they can
by ArkyBeagle 10y ago
Banks just provide a service. IMO, cultural norms are the problem - people have overbought housing chasing various subsidies. People are behaving as-if they can depend on rising wages when there's only been the one spot of rising wages in the late '90s, since 1980.
I think you're close, but take a look at "Progress and Poverty" by Henry George. The problem is the failure to capture rents through taxation.
- branchless 10y agoI'm a georgist. I regularly recommend that book on here, including on this thread. However banks do not provide a service as banks are not intermediaries. The create new money as credit. https://bankunderground.co.uk/2015/06/30/banks-are-not-intermediaries-of-loanable-funds-and-why-this-matters/ https://bankunderground.co.uk/2015/06/30/banks-are-not-inter...
- ArkyBeagle 10y agoIt seems that money creation would be tied to new loans no matter what. A first run through the paper seems to explain the '90s S&L crisis more than it does 2008 - the S&Ls were closer to the ILF model than the FMC model. I'll have to chew on that a bit. Thanks.
- branchless 10y agoIt needs to be issued against productive endeavour. Banks issue against land ramping up prices and in doing so they effectively grab themselves a piece of our labour by forcing us to pay a greater share of our income to them via usury.
- ArkyBeagle 10y agoUsury is One of Those Words. I don't know how a debt instrument needs a distinction like that. Our culture is such that we cannot make basic distinctions between rents in general and productive work. I suspect we'd have to fix that, then let the existing accounting mechanisms sort it out.
- branchless 10y agoWe just need to tax the rentiers. The rest will fall into place.