Dev.SN

The Truth is out: Money is Just an IOU

posted by LaminatorX on Monday March 24 2014, @11:25PM   

Anonymous Coward writes:

"http://www.theguardian.com/commentisfree/2014/mar/ 18/truth-money-iou-bank-of-england-austerity

Back in the 1930s, Henry Ford is supposed to have remarked that it was a good thing that most Americans didn't know how banking really works, because if they did, 'there'd be a revolution before tomorrow morning.'

Last week, something remarkable happened. The Bank of England let the cat out of the bag. In a paper called "Money Creation in the Modern Economy", co-authored by three economists from the Bank's Monetary Analysis Directorate, they stated outright that most common assumptions of how banking works are simply wrong, and that the kind of populist, heterodox positions more ordinarily associated with groups such as Occupy Wall Street are correct. In doing so, they have effectively thrown the entire theoretical basis for austerity out of the window."

• Cool! Cool! (Score: 3, Interesting) by buswolley on Monday March 24 2014, @11:28PM

  by buswolley (848) on Monday March 24 2014, @11:28PM (#20739)

  Crazy I just submitted this story too.
  Here is the link I submitted: http://www.ateconomics.com/2014/03/20/the-old-lady -of-threadneedle-street-fails-to-get-an-a/ [ateconomics.com]

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• Re:Cool! Re:Cool! (Score: 2) by buswolley on Monday March 24 2014, @11:31PM

  by buswolley (848) on Monday March 24 2014, @11:31PM (#20742)

  But now I'm going to pause to RTFA...

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  • Re:Cool! (Score: 0, Funny) by Anonymous Coward on Monday March 24 2014, @11:44PM

    by Anonymous Coward on Monday March 24 2014, @11:44PM (#20752)

    I just received 10 moderator points. Someone trying to shut me up?

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