Tag Archives: Banks

Your money starts life as debt – Its official!

If there was any remaining doubt the Bank of England has confirmed what heterodox economists have been saying for decades. The economic text books are wrong. Banks do not accept deposits from savers and intermediate them into loans to borrowers. Nor do they rely on the multiplier effect or are limited by reserves. The loans in fact […]

Ponzi nation

As we enter the last couple of months before the general election it is worth talking about the unspoken cancer at the heart of New Zealand’s economic system. It seems to be off the election agenda. Sure it is not a purely kiwi disease but there is post GFC a smugness among many New Zealanders […]

How we should fund our economy – Public credit not debt

The key is to fix our financial system. Our economy has failed due to malfeasance — financial, corporate, regulatory and political. We need a new financial system we can trust, not a new wig on our old pig. – Laurence J. Kotlikoff, professor of Economics at Boston University The recent banking fiasco in Cyprus and […]

Debt Jubilee for New Zealand?

Earlier in the year I wrote a two part exposition of the old idea of a debt jubilee but with a new twist. The proposal by Australian economics professor Steve Keen neatly sidesteps the problem of moral hazard by giving everyone money, not just wiping the slate clean of the indebted. The way it would […]