neilwilson

4 ms·

1.
by neilwilson 5d ago
Everything is and always has been “here’s a pig owe me one”. Humans trade by promises. And there is little hierarchy required if a bunch of people are tasked with stripping you of your assets and your liberty unless a specific type of token
2.
by neilwilson 9d ago
Well there’s always the priesthood. That branch of religion has better uniforms anyway.
3.
by neilwilson 11d ago
Only in the secondary market. In the primary market they require different types of money for settlement. If you buy an AI issue, then the AI company has the bank deposit and the bank still has the matching reserves needed to buy government
4.
by neilwilson 11d ago
That assumes the new lenders have an aggregate alternative. If you follow the accounting in a floating exchange rate system you’ll find they don’t. Find me a banker that will turn down free basis points and I’ll show you a pink unicorn.
5.
by neilwilson 13d ago
I make $100 of loans, that creates $100 of deposits which move around. The capital ratio is 20%. I sell $20 of capital in exchange for $20 of deposits which are deleted. And then I do the same tomorrow. All ratios met. No limit on loans.
6.
by neilwilson 13d ago
Loans create deposits, deposits are used to buy bank capital issued by banks. There’s no hard limits. They are ratios which are preprepared because a bank knows how big its sales pipeline is and that takes time to complete. Nothing is limit
7.
by neilwilson 13d ago
If you work for me and I owe you, that’s money. You can sell that debt on to somebody else in exchange for goods and services. That’s all money is - a circulating debt.
8.
by neilwilson 14d ago
They don’t constrain the quantity of lending. They only change the price. Liability side controls don’t work.
9.
by neilwilson 14d ago
All debt is money. Anybody can create money, the trick is getting other people to accept it. Nvidia is vendor financing its output. An ai company order $100m of GPUs. Nvidia delivers and holds onto that debt as an asset - like a bank loan.
10.
by neilwilson 14d ago
Almost like the concept is complete bunkum. It’s been zero in the UK for hundreds of years.
11.
by neilwilson 14d ago
There is no such thing as fractional reserve banking. The multiplier is a myth. Quite why this persists when the Bank of England debunked it in 2014 [0] is anybody’s guess. Just another of those concepts that is neat, plausible and wrong. [
12.
by neilwilson 19d ago
Copyright is a legal grant from the public to the individual. Perhaps it is time to recognise that this literal Mickey Mouse law needs to be rebalanced more in favour of the public than the monopolist, as that creates better societal outcom
13.
by neilwilson 24d ago
"You can of course trot out the point that oh, in 12 months this setup will be extremely outdated! " But interestingly still extremely valuable on the second hand market. The capital expense isn't the amount laid out. It&#x27
14.
by neilwilson 24d ago
“Most economists” haven’t the faintest clue how money works. Relying on their pronouncements is why we’re in the mess we’re in. The LVT doesn’t work for the fairly simple reason that value is in the eye of the beholder and requires a bureau
15.
A Bond Primer for Non Believers(new-wayland.com)
1 points by neilwilson 1mo ago|0 comments
16.
by neilwilson 1mo ago
The US can’t become insolvent. Those who say it can are just hard of accounting. It’s scaremongering nonsense. All treasuries will be swapped back into dollars on maturity and interest settled
17.
by neilwilson 2mo ago
The rich own things. They collude. You hit them with costs and they put the price up which is validated by the extra money given to the poor, or by wage suppression as there aren’t enough jobs to go around. Taxes on the rich are like increa
18.
by neilwilson 2mo ago
The poor will then give it back to the rich in higher prices for the same amount of stuff. The only real way to tax the rich is to ensure that the rich have to compete for workers by paying competitive wages
19.
by neilwilson 2mo ago
It’s not even honest on the tax trade offs. Total tax take is not a constraint on public provision in a floating exchange rate economy.
20.
by neilwilson 2mo ago
Except that revenue doesn’t crater in a floating exchange rate system. Revenue from them craters but the money moves elsewhere and revenue improves there - including an increase in total transactions. Total revenue will always be Total spen
21.
by neilwilson 2mo ago
Having said that if you have no source of iron ore and no self sufficient energy production you’re stuffed anyway. The UK ran out of both a fair while ago
22.
Ancient 'Robin Hood' tree is dead, experts say(bbc.co.uk)
6 points by neilwilson 3mo ago|0 comments
23.
by neilwilson 4mo ago
It’s not a matter of profit. It’s a matter of costs. From the graphic the insurers take in $371.6b and pay out $241.9b in medical services costs. That’s $130b on a pointless activity that uses up physical resources that would be better depl
24.
by neilwilson 5mo ago
Pretty much. Used outside that frame it’s an insult as in: You, sir, are a cad and a bounder.
25.
by neilwilson 5mo ago
Also the process is loans creates deposits creates equity. What do you buy bank shares with? Bank deposits.
26.
by neilwilson 5mo ago
They never did loan out anything. It’s always been a myth propagated by people who have never been involved in banking [0] The limits to banking are when the last creditworthy person prepared to pay the current price of money walks through
27.
by neilwilson 5mo ago
Or just make homebrew. It’s amazing how good just fermenting juice from the supermarket with a bit of added sugar can be. It teaches patience and the blip blop of an airlock is a terrifically calming way to mark the passage of time.
28.
by neilwilson 5mo ago
"This million dollars can be lent out to another person as a mortgage" It can't. It isn't. And it never has been. What banks do is provide liquidity against your collateral. You sell them a charge over your house (for ex
29.
by neilwilson 5mo ago
It's amazing this myth continues when the Bank of England debunked it in 2014. [0] [0]: https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m...
30.
by neilwilson 6mo ago
Other than moving within the rest of the EU under Article 21 EU law trumps German law. In US terms such a requirement is not “constitutional”.

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