Dev.SN ♥ developers
Sections
Dev.SN
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."
(Score: 5, Insightful) by tathra on Monday March 24 2014, @11:54PM
it isnt initially obvious, but once you know that the entire economy is based on debt, this is the only possible case. unfortunately, debt-based economies depend on growth, and growth cant continue forever. debt-based economies are not sustainable in the long term.
(Score: 3, Interesting) by buswolley on Tuesday March 25 2014, @12:13AM
A growth based economy is necessary as long as new people are born and desire goods and services. A steady state population will lead to a steady state economy.
subicular junctures
(Score: 5, Interesting) by maxwell demon on Tuesday March 25 2014, @04:17AM
The problem is that a debt-based economy needs more economic growth than population growth. Indeed, even if the population shrinks, a debt-based economy needs to grow.
The Tao of math: The numbers you can count are not the real numbers.
(Score: 5, Insightful) by The Mighty Buzzard on Tuesday March 25 2014, @12:19AM
123
456
789