tag:blogger.com,1999:blog-2098432983500045934.post5317302679221134849..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: Thank God for them billionaires, huh?The Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-2098432983500045934.post-3715685097593581452016-04-21T10:55:48.713-04:002016-04-21T10:55:48.713-04:00Thanks Art, glad you like that!
So many economist...Thanks Art, glad you like that!<br /><br />So many economists want to analyze banks as if they are just intermediaries in the lending process, as if when I take out a 100,000$ mortgage the source of that money is 10,000$ Art saved(at THAT bank, in many cases), 30,000$ Jazz saved, 20,000$ Nanute saved and 40,000$ that Oilfield saved... and that I am really paying THEM back when I repay and a bank just takes a cut for making the deal happen. Nothing could be further from the truth. Banks are money (credit) creators by them selves. All they need is me to put up collateral and show an income stream that meets their standards. Thats it. In reality I am funding myself and the bank is just charging me to make that happen.Greghttps://www.blogger.com/profile/03139782404004492965noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-13905676571444484452016-04-21T07:51:30.077-04:002016-04-21T07:51:30.077-04:00"... the banks ( they are not part of the pri..."... the banks ( they are not part of the private sector they are outside of it)."<br /><br />Greg, hey. I like that. I may adopt that. I always try to separate out "finance" from productive capital. You've done it.<br /><br />So now we have what -- public sector, private sector, and banking sector?<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-70274666962493830472016-04-21T07:33:29.983-04:002016-04-21T07:33:29.983-04:00One other thing about his "debts balancing ou...One other thing about his "debts balancing out" line. Its a false construct. Private debt is not money I owe to Art or that Jazz owes to Oilfield it is money owed to banks. When I take a loan from a bank no one elses savings account is debited i.e I am not borrowing what someone else has saved. The bank is creating new credit on the spot. So in fact everyone can be in net debt to the banks ( they are not part of the private sector they are outside of it). <br /><br />To spin off of Jazzs comment about economies being driven by spending, lending is not driven by prior saving it is driven by present incomes.Greghttps://www.blogger.com/profile/03139782404004492965noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-25135503547291257132016-04-20T19:47:17.409-04:002016-04-20T19:47:17.409-04:00"Mr. Gardiner is a supply sider."
That&..."Mr. Gardiner is a supply sider."<br /><br />That's it Jazz, you got it. When I read the sentence you quoted, it just struck me as wrong. I didn't know why. But yeah, you got it.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-25268171613285853972016-04-20T17:17:10.954-04:002016-04-20T17:17:10.954-04:00“It is important to keep in mind though that at en...“It is important to keep in mind though that at end of the day economies are driven by underlying things like spare capacity, education, labour and technological process."<br /><br />Mr. Gardiner is a supply sider.<br /><br />I'd say economies are driven by spending - you know, the demand side. Otherwise all that capacity remains spare, and the educted laborers are at home reading about technology on the internet.<br /><br />Cheers!<br />JzB<br />Jazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-77138866581613620492016-04-20T15:11:28.594-04:002016-04-20T15:11:28.594-04:00Oilfield, I saw that one from Keen. It's reall...Oilfield, I <a href="http://newarthurianeconomics.blogspot.com/2016/04/way-ahead-of-ya-steve.html" rel="nofollow">saw</a> that one from Keen. It's really good.<br /><br />One of Keen's section titles in that post is<br /><b>We are experiencing “Peak Private Debt”, not “Secular Stagnation”</b><br /><br />It's important, because "Peak Private Debt" and "Secular Stagnation" are not the same. And you know who else pointed that out? <a href="http://voxeu.org/article/debt-supercycle-not-secular-stagnation" rel="nofollow">Ken Rogoff</a>!<br /><br />Thanks for the link. I want to read it again now.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-1187545634981247582016-04-20T14:30:07.175-04:002016-04-20T14:30:07.175-04:00Art
You seem to like Keen this even has some poli...Art<br /><br />You seem to like Keen this even has some policy suggestions for private debt reduction.<br /><br />http://www.privatedebtproject.org/view-articles.php?Are-We-Facing-a-Global-Lost-Decade-14#_ENREF_1<br /><br /><br />Oilfield Trashhttps://www.blogger.com/profile/16151172995826850192noreply@blogger.com