Hi,
I'd like your comments about following article:
http://www.debtdeflation.com/blogs/2009/01/31/therovingcavaliersofcredit/
It suggest that primary driver of monetary expansion is not the CB, but rather private banking system. It also invalidates the traditional money multiplayer model.
I only skimmed the article but...
Does it really matter whether banks pyramid off of their reserves in strict accordance with the reserve requirement or they pyramid as they wish then find ther required reserves later? Fractional Reserve Banking is a scam whether it follows the rules or not.
i skim read it, and he seemed to be pissed at the idea that banks loaned money willy nilly, and if they noticed theyd over extended what they could do on reserves, qua their legal requirements, they would take loans rom the fed, to acheive the correct reserve ratio after the fact of their credit expansion, or something along those lines. but the point remians the fed lets them do that, moral hazard and all the rest, so its hardly a story 'not revolving around the fed'.
Where there is no property there is no justice; a proposition as certain as any demonstration in Euclid
Fools! not to see that what they madly desire would be a calamity to them as no hands but their own could bring
Yes, I believe ultimetly CB controls things... Otherwise CB couldn't target interest rates (and they do that).
Another question, how is it possible to have 50 trillion $ in debt, with none of monetary aggregates approaching even near? When somebody takes a loan, his account is credited by the same amount of debt he has taken. Though I could probably think of a situation where this would not hold...