Kumhof – financing through money creation – Recent model intermediateion of loanable funds theory misrepresents how credit is created in the real world
loans -> deposits -> reserves
“this matters when you think about macroeconomic simulations especially when it comes to credit shocks”
subprime shock: “the banker wakes up one morning and all of his borrowers have suddenly become a lot more risky”
the trigger “could be anything”
2008 subprime shock/crash/credit crunch: “the banking system compressed – the assets and the liabilities were compressed together – the loans were called in – loans were canceled”
“it was a contraction in the overall amount of financing”
thanks for speaking out. It will arouse a financial shitstorm on you! be prepared!
Mr Kumhof, you are perfectly mistaken, no matter what the truth is, people do not want to know or see it – if it threatens the legitimacy of existing power structures.
Whoever gets a loan – can do things – who gets no loan – can’t do shit.
It does not matter if it’s a lie – if it works for the top arestotalian “elite”.
in short: it’s not about truth – its about control – rule by money and loan and debt – whoever gets a loan can try to extort real resources and labor from the rest of the world and mankind kind of business style.
Otherwise i would have to ask the question: WHAT would be THE ALTERNATIVE to this sick and wrong system that creates suffering a murder?