tag:blogger.com,1999:blog-2277215496195926573.post7725216328557011090..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: Malcolm Sawyer’s strange ideas on banking.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2277215496195926573.post-19053715856531685572015-11-23T00:08:11.067-08:002015-11-23T00:08:11.067-08:00KK,
That's a very informative comment. Many t...KK,<br /><br />That's a very informative comment. Many thanks. I've put the link in.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-7537353930469086592015-11-22T21:14:46.521-08:002015-11-22T21:14:46.521-08:00(a) No link given here to the June 2015 Sawyer &am...(a) No link given here to the June 2015 Sawyer & Fontana paper. A link is:<br />http://www.researchgate.net/profile/Malcolm_Sawyer/publication/278513622_Full_reserve_banking_More_%27Cranks%27_than%27_Brave_Heretics%27/links/5581415f08aed40dd8cd449d.pdf<br /><br />(b) Another "Nobel" prizewinner who supported FRB was Maurice Allais, who is largely ignored by English writers.<br />His proposals were not original but have the very important merit of being simple and clear, without the unnecessary and highly controversial "cranky" features of Friedman, Kotlikoff and Positive Money.<br /><br />In 1999 Allais wrote (translated from French): <br />"...reform must be based on two very fundamental principles: <br />1 - The creation of money must be by the state and the state alone. Any money creation other than the base currency by the Central Bank shall be inhibited, so that "false rights" currently resulting from the creation of bank money would disappear. <br />2 - Any investment for a fixed term must be secured by loans with longer terms, or at least of the same term.<br /><br />This dual condition implies a profound change in bank and financial structures based on the total separation of banking activities observed today and their allocation to three categories of distinct and independent institutions:<br />1. deposit banks without any lending acticities; these would handle receipts and payments, and custody of their customers' deposits, the related costs being charged to the latter;<br />2. lending banks borrowing for fixed terms and lending funds at shorter terms, the overall amount of loans not exceeding the total amount of borrowed funds;<br />3. investment banks borrowing directly from the public or from the lending banks and investing the borrowed funds in companies.<br /><br />Un extrait des propositions de Maurice Allais exprimées dans « La crise mondiale d’aujourd’hui »<br />http://www.agoravox.fr/actualites/economie/article/un-extrait-des-propositions-de-115931<br /><br />KongKinghttps://www.blogger.com/profile/10992633301481631373noreply@blogger.com