Julio: > Well, here again, if I may just address this statement at face value: > > The total amount of money in the world is not essentially infinite.
Because I am responsible for this "infinite" amount of money thing, let me mention that I never claimed that the money in the world is infinite. All I claimed was that given the way this system we live in creates money, money supply is beyond the control of Central Banks and Governments. The amount of world money is very large, if this is what Raghu means and I have no objections to that, but what does large mean after all? 1,000 dollars are a very large for a man who makes less than a dollar a day. Let me say one more thing: it is the US Treasury that can create a lot of money by issuing US Treasury bonds, not Fed, whose money creating power is miniscule when compared to the US Treasury. But for some reason, many are not able to see this. Further, I claimed that the money creation era is a thing of the past and we are in an era of money destruction. You know why? Because, the banks (real or shadow) are not willing to lend anymore for whatever reason (look at the so-called TED spreads) so there is not much new money creation and the debts are either paid back or defaulted, meaning money is destroyed faster than it is created. Is this not very simple to see or am I just living in another planet? Best, Sabri _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
