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Billions of banknotes are missing. Why does nobody care?
- Tabular-Iceberg 5y agohttps://outline.com/gcJfC5 https://outline.com/gcJfC5
- jiveturkey 5y ago> Calculating seigniorage income in the age of electronic money is more complicated than it was in the Middle Ages, but the core concept is the same: it’s the profits that derive from the monopoly on issuing currency. Printing a $100 bill – a decorative piece of paper that is worth $100 only because the American government says it is – costs just 14 cents. And every time the Fed sends one out of the door it can invest the remaining $99.86 in something which pays it interest. Printing money, at the risk of stating the obvious, gives central banks a licence to print money.
- CRConrad 5y ago> Kenneth Rogoff, a Harvard economist and author of “The Curse of Cash”, argues that economists are more temperamentally inclined to talk about cutting-edge concepts like QE than the prosaic question of how banknotes are actually produced. “Economists tend to think ‘it’s not Keynesian macro so it doesn’t matter’,” he said. That fucker's definitely got a bee in his bonnet about Keynesian macroeconomics. But after his Excel fiasco -- that was him, wasn't it? -- he knows he's too much of a laughing stock to dare come out against it in the open, so he's reduced to petty knee-height snipes like this. Hope he chokes on his bile.