Brutkey

GhostOnTheHalfShell
@GhostOnTheHalfShell@masto.ai

@dlakelan@mastodon.sdf.org @SmithWillSuffice@climatejustice.social

Yeah, I said something poorly, but the idea from Forbes was to say that commercially generated money (bank loans) with something like 97% of all the existing money.. now mind you they didn’t specify money precisely.. (M whateva)

Daniel Lakeland
@dlakelan@mastodon.sdf.org

@GhostOnTheHalfShell@masto.ai @SmithWillSuffice@climatejustice.social

Right, but that can't even be close to true, M2 is only 60% of public debt. So that means probably there's a bunch of overseas dollars because it doesn't even exceed the public debt. for 90% of money to be commercially created, the M2/debt would have to be something like 9 or 10 not 0.6

GhostOnTheHalfShell
@GhostOnTheHalfShell@masto.ai

@dlakelan@mastodon.sdf.org @SmithWillSuffice@climatejustice.social

Yeah, like I said, I my eyes sort of likes twitch when I saw that number and I said is this right?.. but your own points bring up an interesting question. Banks do create the principal amount and stuff it into the economy. The total outstanding amount is a function of the total outstanding principle left percolating in economy, or it should be.

.. so the other part would probably be purchased treasuries?

Daniel Lakeland
@dlakelan@mastodon.sdf.org

@GhostOnTheHalfShell@masto.ai @SmithWillSuffice@climatejustice.social

I just suspect the Forbes article is repeating something they heard from an economist who didn't have a clue? how could 9 out of 10 dollars come from banks and 1 out of 10 come from deficit spending, yet all money put together is 0.6 of public debt?

Scott Francis
@darkuncle@infosec.exchange

@dlakelan@mastodon.sdf.org @GhostOnTheHalfShell@masto.ai @SmithWillSuffice@climatejustice.social

Ancient Aliens meme, tagged “economists”