tag:blogger.com,1999:blog-2277215496195926573.post684260908123624190..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: Steve Keen’s debt jubilee idea.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-2277215496195926573.post-19816204090964964672013-04-30T03:05:17.377-07:002013-04-30T03:05:17.377-07:00I’m actually aware of Keen’s point, and I agree wi...I’m actually aware of Keen’s point, and I agree with him.<br /><br />Unfortunately the phrase “fractional reserve” has more than one meaning. You can use it (as you seem to) to refer to a system where reserves actually control the volume of commercial bank lending.<br /><br />Alternatively the phrase can be used to refer to a system in which not all money is backed by reserves / central bank created money. I’m using it in the latter sense.<br /><br />Same problem applies to the phrase “full reserve”. In fact I saw recently that Positive Money are thinking of abandoning the phrase because of its ambiguity.<br /><br />Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-17361618039605794892013-04-29T20:52:30.685-07:002013-04-29T20:52:30.685-07:00"Fractional reserve banking promotes instabil..."Fractional reserve banking promotes instability."<br /><br />There's no such thing as fractional reserve banking. Loans create deposits. Banks are not reserve constrained.mojo.rhythmhttps://www.blogger.com/profile/14901306439675127615noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-79429865410409765382012-09-03T22:10:25.603-07:002012-09-03T22:10:25.603-07:00I favour turning all monies in deposit accounts or...I favour turning all monies in deposit accounts or “term accounts” into equity of a sort, and for reasons I set out here:<br /><br />http://ralphanomics.blogspot.co.uk/2012/09/the-false-logic-behind-glass-stegall.html<br /><br />But the objective there is to give us a more logical and robust banking system. It doesn’t solve the alleged problem (which Keen thinks is a big problem and I think is a non-problem) namely that the paying down of debts has a deflationary effect.<br />Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-57219316562907186082012-09-03T16:49:11.283-07:002012-09-03T16:49:11.283-07:00What about some kind of a debt-to-equity conversio...What about some kind of a debt-to-equity conversion across the entire economy? It could be done without printing money.Suvy Boyinahttps://www.blogger.com/profile/14498944095362886178noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-75368869069505114762012-08-30T05:37:13.272-07:002012-08-30T05:37:13.272-07:00I have been studying your blog posts during my bre...I have been studying your blog posts during my break, and I need to admit your complete article has been very useful and very well composed.<br />Eugenehttp://loanconsolidation14.jimdo.com/noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-37338274571358214502012-06-15T05:00:46.911-07:002012-06-15T05:00:46.911-07:002. Non-debtors would receive a cash injection.
Sa...2. Non-debtors would receive a cash injection.<br /><br />Same goes for SDS.<br /><br />Huh, please explain, I've received no money from a cash injectiongreg_s_shttps://www.blogger.com/profile/13323392670228953113noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-64458763619215658202012-05-26T02:45:41.256-07:002012-05-26T02:45:41.256-07:00Obviously the conventional view is that an interes...Obviously the conventional view is that an interest rate increase is deflationary. But Warren Mosler claims the effect is the opposite, i.e. stimulatory and because the government / central bank machine has to print and spew out more money to debt holders – i.e. to the private sector.<br /><br />However, it strikes me that none of that really matters because the government / central bank machine can always give aggregate demand a boost if interest payments really are deflationary.<br /><br />Saving (in the sense of saving money) is deflationary (Keynes’s paradox of thrift). But that’s not an argument against saving: i.e. if the private sector wants a bigger stock of money, that shouldn’t be a problem for a government with its head screwed on.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-53246750489428424092012-05-26T01:05:27.527-07:002012-05-26T01:05:27.527-07:00Isn't the payment of interest deflationary, es...Isn't the payment of interest deflationary, especially when creditors become reluctant to extend more credit and so interest rates rise?Sackersonhttps://www.blogger.com/profile/17284329249862764601noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-49590308521124304212012-05-25T22:18:42.986-07:002012-05-25T22:18:42.986-07:00You stop refinancing by limiting the banks.
Neith...You stop refinancing by limiting the banks.<br /><br />Neither the Debt Jubilee nor the Job Guarantee can exist in isolation. They all require a re-regulation of the banking system.<br /><br />That re-regulation is what prevents us from travelling down the same road again.<br /><br />Debt jubilee is really a reset of the system - similar to a mass bankruptcy. <br /><br />The operational issues are straightforward to work around. A voucher mailed to addresses associated with national insurance numbers that can only be redeemed by banks for example - similar to the approach used with Child Trust Funds.<br /><br />The difference is really timing and direction. Jubilees happens in a large chunk over a short period of time and is directed exclusively at private debt. <br /><br />The Jubilee is largely a one off redistribution from the banks to the individuals, with the downside that the banks end up with a lot of equity and an 'interest on reserves' income stream from the central bank. <br /><br />Other forms of government spending are over a longer period of time and hit different areas of the economy, with a reduced impact on private debt.<br /><br />So as ever its all down to what you believe is the most important problem: jobs, private debt, or not enough roads.NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.com