Apropos of viewtopic.php?p=255997#p255997, which I kind of hijacked that thread with, I was forwarded this video and thought it did a pretty decent job of explaining how things actually work today:
The just-so story about barter in the beginning is a bit meh, and glosses over the fact that most societies had some kind of central currency given value by the taxation power and the military might of its local or higher government. But the description of the more recent evolution of the current system and how it functions today struck me as pretty accurate.
Fractional lending isnt a problem unless people dont know its being done. But you shouldnt get interest on money you can get back instantly.
MMT just points out that recently the Fed is buying bonds "directly" through the large banks.
What concerns me is Fed going even more direct, pushing 30 year down to 1% like Japan but NOT having to go to the market first to buy from me. We could also get 1% long treasuries but 10% long corporates if the Fed steps out of private markets (no more QE).
Re: How the money system actually works
Posted: Thu Jan 30, 2025 8:27 am
by yankees60
Pointedstick wrote: ↑Wed Jan 29, 2025 10:28 pm
Apropos of viewtopic.php?p=255997#p255997, which I kind of hijacked that thread with, I was forwarded this video and thought it did a pretty decent job of explaining how things actually work today:
The just-so story about barter in the beginning is a bit meh, and glosses over the fact that most societies had some kind of central currency given value by the taxation power and the military might of its local or higher government. But the description of the more recent evolution of the current system and how it functions today struck me as pretty accurate.