Banking: Credit Creation Theory, Rediscovered (Important Watch)

Macroeconomics on what “Banking” is in their modelsThe prevalent theory now - and is done on purpose - are banks don’t have a direct impact on macroeconomic models. Banks operate as Intermediaries. Banks don’t function as creators of (a Quantity of Money) out of nothing. Well, they do. (Werner, 2014)Also, how the ELITE people didn’t want, especially in 2007-8 onward, particularly the elite financial class, you commoners to blame them; or KNOW they have done this shit before to Japan and back through the years, using Central Banking and their lesser banks to pump up asset prices.The entire episode on Richard Werner’s papers and rediscovery of the credit creation theory of banking is worth a listen just for the side bars.* Intermediaries (pass thru) - no discernable impact to their economic models* Fractional Reserve Banking - % of deposits held from a creditor (you, the Money Multiplier) + other liquid assets, versus their credit (loan business) model lent at interest* Credit Creation of Banking (Werner, 2016)* Financial Asset Bubbles: (Ponzi) Real estate-asset market links Capital Flows into them which create overvaluation, which then creates a bubble-bust cycle to consolidate power to the Central Banks. (Mentioned in Werner’s discussion with Tucker - here)* Consumer Loans + (Credit Cards) which generates Inflation if the same quantity of goods are in the market, but the quantity of money created increases * Entrepreneurial Investment (GDP Generator): small banks that lend to small businesses that are able to produce more goods and services, and maintain employment (about 65-85% of all employment comes from this), rather than the CENTRAL BANK’s preferred desires to circulate money to buy up assets (Option A) that inevitable create hardships for people. Most insightfully: one can effectively disaggregate the number (%) going to GDP versus the percentage going to Asset Purchases.Other Financial Newshttps://www.zerohedge.com/the-market-ear/k-shaped-economy-why-americas-bottom-half-falling-behindhttps://www.zerohedge.com/geopolitical/30-food-produced-worldwide-goes-wasteThe top 1% holds 23% of total wealth and the the top 20% hold 71% This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit jasonpowers.substack.com/subscribe