Kumhof – financing through money creation – Recent model intermediateion of loanable funds theory misrepresents how credit is created in the real world

loans -> deposits -> reserves

“if this is a good business proposition i am going to create these funds”

“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?


How can we achieve a sustainable economy?


It reads like from a movie – but it is “real” (i believe every word the Rolling Stone puts on paper and web).

But then – we should not be astonished – in the financial world has it’s own physical laws and magic tricks – usually the magic trick is the Copperfield style of: “see these 2 billion USD? i gonna make it dissapear in 3…2…1…” Where have they gone? We don’t know.

“Goldman Sachs earned 600 Million USD in fees”

cnn: more than 2 billion dollars – how the Malaysian Gov robbed it’s people’s pension fund – with the help of Goldman Sachs

“In 2015, Malaysia’s former Prime Minister Najib Razak was accused of channelling over RM 2.67 billion (nearly USD 700 million) from 1Malaysia Development Berhad (1MDB), a government-run strategic development company, to his personal bank accounts.[1]


Facing corruption scandal, Malaysian PM fires officials investigating him

“Just before Christmas, Malaysian authorities filed criminal charges against Goldman, seeking a stunning $7.5 billion in reparations for the bank’s role in the scandal. Singapore authorities also announced they were expanding their own 1MDB probe to include Goldman.

In the 1MDB scheme, actors tied to former Malaysian Prime Minister Najib Razak allegedly siphoned mountains of cash out of a state investment fund. The misrouted money went to lavish parties with celebrity guests like Alicia Keys, a $35 million jet, works by Monet and Van Gogh, property in New York, Los Angeles and London, and (ironically) the funding of the movie The Wolf of Wall Street.


Malaysia’s Prime Minister Najib Razak. Primus Pacific Partners said Goldman Sachs provided bad advice to one of its clients in order to help the financial fortunes of Mr. Razak.” (src)

Yahoo Finance on GoldmanSachs:

if capitalism (and by capitalism i mean MONEY) would motivate people to do good – i would be a proud capitalist.

(unfortunately brain scientists discovered quiet catastrophic effects of “presence of money” (even if it is just a picture) or just the “thought about money” on human psyche and behavior, the “lesser evil than socialist dictatorship” theory is not enough anymore sorry)

If Mercedes and Porsche and Lamborghini and Ferrari and Pickups and SUVs and Hummers would run on renewable Hydrogen created with 100% renewable energy – i would be proud on everyone driving such a thing – but right now – i just consider them as reckless egoistic idiots and any women that fancies this “show of materialism” as a short sighted prostitute.

So because even egoistic psychopathic dictators and idiots want to be loved – women – i urge you – also in the name of your children and grand-children (that you surely do not want to die in avoidable wars over finite resources) to reconsider your priorities when it comes to mating.

(latest estimates date peak-oil “pretty sure before” 2035)

btw: if you really want – you can also burn hydrogen e.g. keep your loud combustion engine and accept that mankind is just not as reasonable as it thinks it is X-D

So if you need everyone 100 miles around you need know that YOU are DRIVING a COMBUSTION ENGINE RIGHT NOW then what the heck why not X-D (just don’t do it every morning at 4.00 AM will ya?)

Let the Yanks keep their pickups – just convert them to renewable hydrogen and they do not have to frack their drinking water! (as only short sighted idiots would make such a deal “yes we will die early but it will be fun until then”)