asterisk2a + greatdepression + moneysupply   2

IMF's epic plan to conjure away debt and dethrone bankers - Telegraph
The Chicago Plan Revisited

http://www.imf.org/external/pubs/ft/wp/2012/wp12202.pdf

Benes and Kumhof argue that credit-cycle trauma - caused by private money creation - dates deep into history and lies at the root of debt jubilees in the ancient religions of Mesopotian and the Middle East.

[...]

The key of the Chicago Plan was to separate the "monetary and credit functions" of the banking system. "The quantity of money and the quantity of credit would become completely independent of each other."

[...] Private lenders would no longer be able to create new deposits "ex nihilo". New bank credit would have to be financed by retained earnings.

[...] The finding is startling. Simons and Fisher understated their claims. It is perhaps possible to confront the banking plutocracy head without endangering the economy.
WallStreet  plutocracy  oligopol  banking  banking  crisis  miltonfriedman  Fed  moneysupply  monetary  theory  monetary  policy  System  fiat  money  deleveraging  balance  sheet  recession  debtoverhang  GFC  greatrecession  greatdepression  IMF  fiat  currency  fractional  reserve  banking  IrvingFisher  Irving  debt  jubilee  credit  bubble  credit  cycle  economic  cycle  economic  history 
october 2012 by asterisk2a
Will Latest Market, Credit Woes Add Up to a 'Global Recession'? - YouTube
- downgrade in confidence, stat gov is not able to prop up economy if needed- downgrade in confidence, after gov debt ceiling debate ended with austerity shaped bill (compromise)- downgrade in confidence, after Obama could not show leadership in debate and give boundaries
- government, and other institutions (Fed, SEC, Banks, Individual) failed
- growth panic
- no leadership on both sides of the Atlantic
- slow growth below long-term average guaranteed in developed markets whose bubbles burst 
- wrong medicine currently administered 
- currently, QE, monetization does not lead into healthier moneysupply in UK, USA, EU. bc of debt overhang and deleveraging process - which will still take years.
KennethRogoff  GFC  paulkrugman  2011  greatrecession  barackobama  presidency  monetary  fiscal  policy  politics  mistake  folly  sovereign  debt  ceiling  debtceiling  crisis  August  PIIGS  Fed  ECB  economy  recovery  GDP  growth  QE  QE3  debtoverhang  inflation  deflation  deleveraging  Japan  lostdecade  history  lesson  liquidity-trap  greatdepression  austerity  unemployment  output-gap  moneysupply  monetization  BOE  UK  europe  USA 
august 2011 by asterisk2a

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