And it's not government. It's a private corporation mandated by the government with regulatory duties (which it has failed to uphold). The government does NOT create money. In America, the Federal Reserve Bank of New York does. There used to be several banks in America that issued their own dollars and it's still legal to do so. The Federal government has never created money.
Giving that power to the government is an even worse idea than doing it privately: the government prints all the money it wants and inflates the currency to death. It's more or less what happened in Rome. Arguing that the government should have control over monetary supply is not the answer, they failed to regulate the Fed and the banking sector and deliberately caused this mess. To be clear: the Fed is a terrible idea itself. The centralization of money doesn't work and is especially dangerous when taken away from a physical standard like gold. That's what the crypto theorists are talking about. The government sucks, the central banks suck, let's create our own currency that nobody controls and whose value comes from supply and demand in the economy. It takes work to create it. Money only works because people agree that it has value. That has nothing to do with government or centralized entities controlling the supply and using it as a blunt geopolitical tool.
The problem is greedy assholes having control of the system. You advocate transferring control from one set of greedy assholes to another set of greedy assholes.
Crypto can remove their control entirely. No more bankers, no more middlemen.
I'd be interested to hear your thoughts on credit unions and how they fit into this existing framework. As non-profit, private cooperatives they are typically beholden to specific localities or organized groups, and are actively out there as a different type of alternative model.
I'm all for credit unions; in fact all my accounts are at my local credit union, as is my mortgage. It's definitely an improvement.
But conceptually it's still the same--money creation via loans is delegated to private entities, with the gains from that activity captured by them.
Really this is more of a thought experiment to get people to think differently about money in our system than a serious proposal. Too many people forget that what we call money is always ultimately under our control, not theirs. Hopefully people learn something from it.
You've got this ass backwards. You don't understand the Fed. It pays the Treasury the interest it makes. https://www.stlouisfed.org/on-the-economy/2018/september/fed-payments-treasury-rising-interest-rates
And it's not government. It's a private corporation mandated by the government with regulatory duties (which it has failed to uphold). The government does NOT create money. In America, the Federal Reserve Bank of New York does. There used to be several banks in America that issued their own dollars and it's still legal to do so. The Federal government has never created money.
Giving that power to the government is an even worse idea than doing it privately: the government prints all the money it wants and inflates the currency to death. It's more or less what happened in Rome. Arguing that the government should have control over monetary supply is not the answer, they failed to regulate the Fed and the banking sector and deliberately caused this mess. To be clear: the Fed is a terrible idea itself. The centralization of money doesn't work and is especially dangerous when taken away from a physical standard like gold. That's what the crypto theorists are talking about. The government sucks, the central banks suck, let's create our own currency that nobody controls and whose value comes from supply and demand in the economy. It takes work to create it. Money only works because people agree that it has value. That has nothing to do with government or centralized entities controlling the supply and using it as a blunt geopolitical tool.
The problem is greedy assholes having control of the system. You advocate transferring control from one set of greedy assholes to another set of greedy assholes.
Crypto can remove their control entirely. No more bankers, no more middlemen.
I'd be interested to hear your thoughts on credit unions and how they fit into this existing framework. As non-profit, private cooperatives they are typically beholden to specific localities or organized groups, and are actively out there as a different type of alternative model.
I'm all for credit unions; in fact all my accounts are at my local credit union, as is my mortgage. It's definitely an improvement.
But conceptually it's still the same--money creation via loans is delegated to private entities, with the gains from that activity captured by them.
Really this is more of a thought experiment to get people to think differently about money in our system than a serious proposal. Too many people forget that what we call money is always ultimately under our control, not theirs. Hopefully people learn something from it.