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”There is no Science, the Study of which is more useful and commendable than the Knowledge of the true Interest of one’s Country; and perhaps there is no Kind of Learning more abstruse and intricate, more difficult to acquire in any Degree of Perfection than This, and therefore none more generally neglected. Hence it is, that we every Day find Men in Conversation contending warmly on some Point in Politicks, which, altho’ it may nearly concern them both, neither of them understand any more than they do each other.
Thus much by way of Apology for this present Enquiry into the Nature and Necessity of a Paper Currency. And if any Thing I shall say, may be a Means of fixing a Subject that is now the chief Concern of my Countrymen, in a clearer Light, I shall have the Satisfaction of thinking my Time and Pains well employed.
To proceed, then,
There is a certain proportionate Quantity of Money requisite to carry on the Trade of a Country freely and currently; More than which would be of no Advantage in Trade, and Less, if much less, exceedingly detrimental to it.
This leads us to the following general Considerations.”
http://founders.archives.gov/documents/Franklin/01-01-02-0041

Paper is poverty…[edit]

“Paper is poverty…it is the ghost of money, and not money itself.” Thomas Jefferson,

It’s genuine. It’s from a 1788 letter to Edward Carrington. I’ve added it to the quotes page.—KHirsch 15:20, 11 November 2009 (UTC)

The bankruptcies in London have recommenced with new force. There is no saying where this fire will end. Perhaps in the general conflagration of all their paper. If not now, it must ere long. With only 20 millions of coin, and three or four hundred million of circulating paper, public and private, nothing is necessary but a general panic, produced either by failures, invasion or any other cause, and the whole visionary fabric vanishes into air and shews that paper is poverty, that it is only the ghost of money, and not money itself. 100 years ago they had 20 odd millions of coin. Since that they have brought in from Holland by borrowing 40. millions more. Yet they have but 20 millions left, and they talk of being rich and of having the balance of trade in their favour.

https://founders.archives.gov/documents/Jefferson/01-13-02-0120

I am convinced that those societies (as the Indians) which live without government enjoy in their general mass an infinitely greater degree of happiness than those who live under the European governments. Among the former, public opinion is in the place of law, & restrains morals as powerfully as laws ever did anywhere. Among the latter, under pretence of governing they have divided their nations into two classes, wolves & sheep. I do not exaggerate. This is a true picture of Europe. Cherish therefore the spirit of our people, and keep alive their attention. Do not be too severe upon their errors, but reclaim them by enlightening them. If once they become inattentive to the public affairs, you & I, & Congress & Assemblies, judges & governors shall all become wolves. It seems to be the law of our general nature, in spite of individual exceptions; and experience declares that man is the only animal which devours his own kind, for I can apply no milder term to the governments of Europe, and [254] to the general prey of the rich on the poor.

@Johndoyle.
“Debt is claim,no? You can call it lots of other things, like IOU’s, tokens etc, but it all comes back to there first being a debt.”
https://archive.org/stream/AlexanderDelMar/AlexanderDelMar-TheScienceOfMoney1896#page/n7/mode/2up
Actually no it does not all come back at first there is a debt. What there is and the condition precedent for trade is a double coincidence of wants, more precisely The requirement to exchange.
Money is a rain check which allows delayed consideration if the Money token is created so that it comes from Skin in the Game it does not give rise to the asymmetric risk problems inherent in the Creation of Money with the Debt mentality.

This is not even a semantic point it is a logical point.

The existing system is such that the Debt = Money axiom holds but that is by no means the only way to do Money.

This from Alexander DelMar , who correctly showed that Money as an expression of value was an abstract “Convenient posit” ( See Quine two dogmas). And what its true substantive function is and was back then and has been recognised by people down the ages from Aristotle onwards is a Mere numerical ratio. To express a numerical ratio there is absolutely no reason to insist that any component of debt necessarily exists.

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TIM GOLDFINCH
@TIMGOLDFINCH
·
Feb 20
Not true , there are capital and reserve requirements(in reserves in some countries) and credit is also constrained by the viability of the borrower & the demand for credit.
My daughter was offer £175 to transfer to HSBC . Now why do you think they would offer her that?
@jbhearn
The Monetary System Explained
@SubGrew
Replying to
@TIMGOLDFINCH

@ektrit
and 7 others
In practice, reserve req’s are not really a constraint because banks can just issue credit beyond the reserve requirement, and then go to the central bank for reserves after the fact to cover. Therefore its not really a constraint. See pgs 10-11 here: https://imf.org/external/pubs/ft/wp/2012/wp12202.pdf
6:01 PM · Feb 20, 2020·Twitter Web App
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GrubStreetJournal
@GrubStreetJorno
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@TIMGOLDFINCH
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And then came the Wolves. Jefferson and Franklin. Paper is Poverty. “If once they become inattentive to the public affairs, you & I, & Congress & Assemblies, judges & governors shall all become wolves.” #Propaganda #FourthEstate #ConquestofDough #MAGA #TRUMP2020


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And then came the Wolves. Jefferson and Franklin. Paper is Poverty. “If once they become inattent…
”There is no Science, the Study of which is more useful and commendable than the Knowledge of the true Interest of one’s Country; and perhaps there is no Kind of Learning more abstruse and intricat…
notthegrubstreetjournal.com
TIM GOLDFINCH
@TIMGOLDFINCH
·
Feb 20
Replying to
@SubGrew

@ektrit
and 7 others
I don’t have to you have just agreed with me “Therefore its not REALLY a constraint”
And there is no cost for the additional reserves ? Or to raise Capital to expand the balance sheet ?
The Monetary System Explained
@SubGrew
·
Feb 20
Well when you can borrow basically at 0% and lend to a business at, say, 5%, I think the marginal cost of reserves pales in comparison. It’s essentially a negligable cost. And capital requirements are also gamed because the central bank can just inflate the pool of reserves.
TIM GOLDFINCH
@TIMGOLDFINCH
·
Feb 20
Even at 0% (not UK US) why isn’t there a wash of credit creation in Japan or the EZ ?Causing CBs to tighten policy?because it is constrained by the factors I mentioned. Banks need to satisfy day to day customer demand for cash,which means liquidity constrains credit creation >
TIM GOLDFINCH
@TIMGOLDFINCH
·
Feb 20
And that is why HSBC wants more depositors

5 thoughts on “And then came the Wolves. Jefferson and Franklin. Paper is Poverty. “If once they become inattentive to the public affairs, you & I, & Congress & Assemblies, judges & governors shall all become wolves.” #Propaganda #FourthEstate #ConquestofDough #MAGA #TRUMP2020

  1. rogerglewis says:

    rogerglewis on February 22, 2020 at 10:50 am said:
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    rogerglewis on February 22, 2020 at 10:59 am said:
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    https://youtu.be/ngr-ql2NzqU turn on auto translate to english if you do not speak German

    Reply ↓
    rogerglewis on February 22, 2020 at 11:41 am said:
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    “Much of this can be difficult to come to terms with. The idea that money is simply created out of thin air is alien to our way of thinking. I doubt this is accidental. My feeling is we’re schooled this way deliberately so our thoughts won’t stray towards grasping the true nature of the society imposed upon us. I have read the suggestion from (Professor Henry C. K. Liu) that when this gets properly understood it’ll be as significant as grasping that the Earth isn’t flat or that it goes around the sun.

    I agree. I think the true dark ages are those we’re living in now.

    Bill Kruse – http://www.economania.co.uk/various-authors/various-authors.htm
    – Permission granted to freely distribute this article for non-commercial purposes if attributed to Bill Kruse, unedited and copied in full, including this notice.

    http://bibocurrency.com/index.php/downloads-2/14-english-root/105-passive-bibo-currency-distinguishing-claims

    https://medium.com/@alexanderdouglas/keen-and-mosler-on-mmt-35d7cb7b2b68

  2. rogerglewis says:

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    John Hearn
    @jbhearn
    Replying to
    @EdgarWortmann

    @TIMGOLDFINCH
    and 9 others
    Easier to remember that all cash (currency) is money, but not all money is cash and better to think of money as a medium of exchange, unit of account and standard of deferred payment.
    2:03 PM · Feb 21, 2020·Twitter for iPad
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    GrubStreetJournal
    @GrubStreetJorno
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    @jbhearn

    @EdgarWortmann
    and 10 others
    And then came the Wolves. Jefferson and Franklin. Paper is Poverty. “If once they become inattent…
    ”There is no Science, the Study of which is more useful and commendable than the Knowledge of the true Interest of one’s Country; and perhaps there is no Kind of Learning more abstruse and intricat…
    notthegrubstreetjournal.com
    Richard Werner
    @scientificecon
    ·
    Feb 21
    Replying to
    @jbhearn

    @EdgarWortmann
    and 9 others
    Not true. International accounting standards say: current account bank deposits are “cash” money. Also, central bank notes are promissory notes, ie. credit.

    Reflecting this reality, we get:
    All cash is credit. All money, except gold, is credit.

    The importance of credit creation
    TIM GOLDFINCH
    @TIMGOLDFINCH
    ·
    Feb 21
    Now Richard , you know I support a lot of what you say & agree with most , but current account= cash is bollocks .
    And I rest my case by the fact that the international accounting standards ( popular with MMT) disagree!
    All CB notes are “promissory” agree but not credit >
    TIM GOLDFINCH
    @TIMGOLDFINCH
    ·
    Feb 21
    There is a difference between the medium of exchange being supported by a promise and a loan being supported by a promise to repay . The former develops the note into a medium of exchange ( that every man in the street accepts as cash) an the latter a debt >
    TIM GOLDFINCH
    @TIMGOLDFINCH
    ·
    Feb 21
    you must have more varying confidence in .I wonder if the the people in China see it as the same ?
    dr.menendez
    @renee_menendez
    ·
    Feb 21
    Replying to
    @jbhearn

    @EdgarWortmann
    and 10 others
    Maybe it is appropriate to distinguish between currency (cash) and the reference to currency. A credit is an arrangement, where the object of negotiation is currency. => Credit is on a meta-level to currency – therefore it is not appropriate to identify credit and currency.
    John Hearn
    @jbhearn
    ·
    Feb 21
    Almost right……where the object of negotiation is a claim on currency and it is most appropriate to separate the currency and credit components of money.
    EWortmann
    @EdgarWortmann
    ·
    Feb 21
    The object of negotiation is not necessarily a claim to money. It is expressed, however, in the currency: the general unit of value.
    John Hearn
    @jbhearn
    ·
    Feb 21
    Correct, it is a claim on currency as well as monetary measure.
    dr.menendez
    @renee_menendez
    ·
    Feb 21
    Due to the hierarchical relation of credit and currency one must note, that money in the meaning of Mxyz is not a well defined entity, because it consists of an object (currency) and claims on that object (deposits). It is more a proxy variable to map purchasing power…
    John Hearn
    @jbhearn
    ·
    Feb 21
    Clever use of the double entendre “note”
    Marc Stevenson
    @stevensonmarc1
    ·
    Feb 22
    Replying to
    @jbhearn

    @EdgarWortmann
    and 10 others
    It also has the fabulous advantage of making the transaction anonymous.

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