This is a link to Joseph Huber "Sovereign Money" website.
Excellent material. I make it a blog entry for my future reference.
I agree totally with what he says here: ( I'm sure he will be glad to know that)/
"As a consequence, commentators overlook the fact that money creation and
money lending/spending are two different functions, but carried out uno actu in
the present credit-money or debt-money system based on fractional
reserves. The wrong identity of credit and money also leads critics to
deny that in a modern money system the money base or money supply in
circulation can be debt-free (not, of course, the loans or securities
issued by use of that money). As long as economists stick to the
absolutised axiomatic identification of money with credit,
their support for monetary reform is likely to be lukewarm at best."
Money creation and lending are two different functions! The primary and sole purpose of money creation is not lending but direct establishment of a medium of exchange. In the debt based monetary system creation of money that is its primary purpose with secondary purpose of being a medium of exchange.
The Monetary System is the operating system. Lending is simply one of the million of buying/selling of things that can be done using pre-existing money in the Monetary Operating System. In the lending situation it is used to sell/buy (as a medium of exchange) contractual future return payments of money plus interest payments of money. Finance is one application function of money.
Application programs do not dictate nor dominate the conceptual structure of the operating system!
Burning wood is a functional application of thermodynamics, not the the creator of the energy!
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