tag:blogger.com,1999:blog-2277215496195926573.post8502029167976204410..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: Banks increase the total amount of debt – what of it?Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2277215496195926573.post-65345722249053915452016-01-26T14:08:27.148-08:002016-01-26T14:08:27.148-08:00ok, thanks for the linkok, thanks for the linkAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-82978074278122229992016-01-26T12:35:13.252-08:002016-01-26T12:35:13.252-08:00Hi Cool Slim,
There's no way banks can avoid ...Hi Cool Slim,<br /><br />There's no way banks can avoid charging interest for the simple reason that those who fund banks (shareholders, bondholders, depositors, etc) charge banks interest. Though the AMOUNT charged at present is at a record low. Thus at present, banks will be charging significant amounts for administration charges and provision for bad debts, but very little by way of genuine interest.<br /><br />As distinct from passing on the interest charged by bondholders etc, banks of course also create some new money out of thin air every year and charge interest on it. But the amount they charge tends to undercut, i.e. be less than, that demanded by bondholders etc. More on that on p.31 here:<br /><br />http://www.jamesrobertson.com/book/creatingnewmoney.pdf<br />Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-76105669056013682472016-01-26T09:01:28.538-08:002016-01-26T09:01:28.538-08:00The real harm is done by allowing banks to charge ...The real harm is done by allowing banks to charge interest on loans in my opinion. It pushes up prices and unnecessarily increases the profits of banks.Anonymousnoreply@blogger.com