I would say new money is created when the banks loan on the ratio approved by the feds as debt to them.
Banks can have $10 in actual cash and loan $100-$150 off that $10.
That $100-$150 goes to somebody to now use and spend.
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Now that $100 or $150 can be used to build capital and expand the economy. And the interest on that debt is the “new” dollars necessary to keep price levels the same in the bigger economy.
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Anyway, the Monetarist way, let the economy do it’s thing
and gradually expand the money.
And the Keynesian way, using the government spending to stimulate the economy.
We’re living it now. We don’t need to rely on some dusty old econ guy commenting on the work of some other dead old econ guy.
Fascinating!
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Banks create credit, not money.
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Don’t get side tracked.
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If you are talking to me, I’m not getting sidetracked just stating a truth. Credit and creating money are 2 fundamentally different things.
Yeah, one is made by the stroke of a keyboard, the other you have to type in with a keyboard. Hyooge difference.
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I didn’t know the banks create currency. Good thing your here to spread your ignorance. How many dollars have the banks created that is in circulation? Lots, huh. I do remember checking on my denomination and it said made by B.O. A.
I will take Chavez as an example. As his example is most recent on your list.
Oh no, he took oil profits and funneled them back into social programs for the people, driving down poverty and illiteracy. The horror!
Don’t let this get out. People may start to get ideas and we don’t want the oligarchy to get nervous and not think that everything is for their insatiable greed.
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And what happened when Pinochet took over in a coup?
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Then move there
Umm…
Have you seen the current state of Venezuela?
“Venezuela is facing a severe humanitarian emergency, with millions unable to access basic healthcare and adequate nutrition. Limited access to safe water in homes and healthcare centers “
From
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“Our main objective is to counter the corporate media propaganda against the Bolivarian Revolution by giving a voice to leftist and grassroots movements in Venezuela.”
At least it’s not a slanted source or anything.
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Relax – it wasn’t REAL Socialism … besides, everyone knows the CIA intervened and caused what is happening in Venezuela currently
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It’s also a 17 year old article.
It never is.
So when they extend credit which goes as payment to vendors, businesses, etc. that money never sees circulation?
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Don’t you get it yet? It’s just a circle jerk for the ultra rich!
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Correction: It never HAS BEEN. Next time, it’ll definitely work.
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Fast forward 15 years, what happened?
@everyone All oligarchs and socialist leaders are humanitarians, change my mind.
SO do borrowers make the money appear when they pay back their creditors?
Or is the Bureau of Engraving and Printing that makes the money?