[R-G] [BillTottenWeblog] The Case for Monetary Reform

[Bob Anderson]

Bill,
    Is this what is known as double entry ledger keeping, accounting?

Very interesting,
Thanks,

Sincerely,
Robert L Anderson (Bob)
324 Richmond Dr SE
Albuquerque, NM 87106
505-858-0882
<citizen at comcast.net>

> From: Bill Totten <shimogamo at ashisuto.co.jp>
> Reply-To: <BillTottenWeblog-owner at yahoogroups.com>, "Radical anti-capitalist
> environmental discussion." <rad-green at lists.econ.utah.edu>
> Date: Fri, 08 May 2009 08:23:22 +0900
> To: <citizen at comcast.net>
> Subject: [R-G] [BillTottenWeblog] The Case for Monetary Reform
> 
> 
> Fact: The money one borrows from a bank is not depositors' money at all.
> It is new money created by the simple process of writing the amount of
> the loan on the credit side of the borrower's account. Ninety seven
> percent of all money in circulation originates in this way. If banks
> actually lent their depositors' money it would not be available when
> they wanted it. If someone wanted to draw out money and was told,
> "Sorry, we've lent it to Joe Blow", he would be justifiably annoyed.
> 
> In other words, 97% of money is not "real" money at all but credit, just
> figures in a bank's ledger or computer. It is created out of nothing.
> Yet is used and accepted as real money. To all intents and purposes it
> is money. Borrowers buy houses with it, pay wages and buy raw materials
> with it, and spend it in many ways. Yet it is just figures in a ledger
> transferred from one account to another. It is called various things -
> credit, bank-money, number-money, cheque-money, debt-money, electronic
> money. Whatever it is called, it is used and trusted because people know
> they can obtain real money, notes and coins, if they want.