FREE EBOOK ¹ EPUB The Production of Money ë 9781786631343 Ô NATURALTREATMENT

EPUB The Production of Money

FREE EBOOK ¹ EPUB The Production of Money ë 9781786631343 Ô NATURALTREATMENT Â What is money where does it come from and who controls itIn this accessible brilliantly argued book leading political economist Ann Pettifor explains in straightforward terms history’s most misunderstoodThat democracies can and indeed must reclaim control over money production and restrain the out of control finance sector so that it serves the interests of society as well as the needs of the ecosystem The Production of Money examines and assesses Pettifor takes up the cudgels on behalf of JM Keynes and his theory of money and pitches in with a fierce polemic against the neoclassical schoolHer argument hinges on Keyne’s great insight that all money is debt even when it takes the form of a banknote “I promise to pay the bearer on demand’ etc Whilst the orthodox mainstream see little that is worthy of note about the phenomenon being just a means to mediate exchanges between the provider of a good or services and a consumer Pettifor sets out the view that the bond of social trust that money represents is crucial to understand why economies either flourish or flounderShe is good at tackling the misunderstandings that are very common about the nature of money For example very little of the stuff that facilitates the countless exchanges that take place every day takes the form of the physical stuff that bears the imprimatur of the body which has a monopoly on producing money – the national bank Ninety five percent of the medium of exchange is conjured up on bank ledgers with balances being reported nowadays by the computers that tell you how much spending your bank account will let you do When a bank official tells you yes your can have that £10000 loan it does not involve the shifting of wads of physical money from its reserves to wherever you wish to store the cash – it figures simply as a plus sign shown on your account report that your spending limit has increased by that amountPettifor believes that this pricks the bubble of falseness which tells us that there is ‘magic money tree’ In truth we do not have to invoke the supernatural to explain where this money comes from; it is robust and perfectly rational social science that tells us it pops into existence whenever there is the prospective of useful work to be doneThe key to understanding money it seems lies with the nature of trust and what needs to exist in society in order that it is sustained The bank official will not – or should not – grant me £10000 if there was not collateral behind me which established the fact that I was a plausible and trustworthy person and that my proposed use of the money would add value to whatever project I was involved in This might take the form of a new piece of machinery that increased the productivity of the workers in my factory or an increment to the value of a piece of property conseuent to putting in a new extension The banker would be doing her job is she considered all of these factors in their appropriate depth and reached a conclusion as to whether grant or refuse the credit based in this appraisalIn this way banks can create billions of amounts of money every day and is licensed to do so by the fact that they have an account with that great bank of all banks the national bank At the end of each day they report the high street bank reports its trading activity to the national bank and it agrees to cover them for the liabilities they have entered into as a result of granting loans National banks can do this because they have the authority of the state behind them and as long as the state is able to produce its own currency it can never go bankrupt With this much explained we get to understand the full extent of the folly that produced the credit crunch crisis of 2007 which morphed into the sovereign debt crisis which continues until today What we have no come to term the ‘financialisation’ of approaches to banking and the provision of financial services had overwhelmed what has been considered the good practices of the old high street bank which reuired the bank manager to know her customers and to understand their level of creditworthiness The panoply of exotic credit instruments that had come into existence in the years preceding the crunch has encouraged the finance industry to think that risk had been eliminated from the business of lending and that money could be ploughed in unlimited amounts into problematic areas like the subprime mortgage market When this bubble burst so dramatically all sense of anything or anyone being trustworthy vanished and the heavily bailed out banks stopped lending to just about anyone including the businesses that were supposed to be sustaining the growth and prosperity of the nationPettifor’s short book is essentially an appeal to return to a full appreciation of both the nature of money as credit on one side of the ledger and debt on the other and the wonders that it can perform when we have a solid theory on how it can function providing sufficient trust is maintained in the social processes which oversee its productionHer argument becomes radical because it makes democracy central to these processes of money production The central bank needs to operate with a mandate which covers the social good of full employment in its remit alongside keeping a wary eye on levels of inflation Providing that its daily work is properly monitored by the representatives of democratic society and it is not permitted to captured by self interested elites chasing the uick bucks that come from inflated share holder value and suchlike then the line will be held against the demoralising destructive tendency towards austerity and other ways to sueeze the public realmAll in all this is a short book that helps to set out some solid thinking about the true nature of money and how in the hands of a democracy determined to promote the welfare of the entire population it can become something that resembles the magic tree which the politicians are so keen to disaparage

DOC ô The Production of Money ☆ Ann Pettifor

What is money where does it come from and who controls itIn this accessible brilliantly argued book leading political economist Ann Pettifor explains in straightforward terms history’s most misunderstood invention the money system Pettifor argues While Pettifor rightfully addresses the need for a return to Keynes and accurately diagnoses many of the problems in our financial and economic system her prescriptions are vague This is because she tries in a very British way to sell her book as the most reasonable thing in the world and not the radical call to action that it actually isFor instance she recommends that we must demand the transformation of our financial systems to render the finance sector servant not master of both domestic economies and the global economy One struggles to imagine how this could be achieved without the force of arms in the world we now inhabit but Pettifor's tone throughout is almost condescendingly retiring She doesn't want to be associated with the rabble who call for wholesale revolution and she seems to identify with the technocrats that she vilifies than the activists whom she fetesThat said this book shed light on a number of issues that I as an economic naif am trying to understand It also points the way to further research with a wealth of useful citations that I fully intend to read some day

Ann Pettifor ☆ The Production of Money PDF

The Production of MoneyPopular alternative debates on and innovations in money such as “green E” and “helicopter money” She sets out the possibility of linking the money in our pockets or on our smartphones to the improvements we want to see in the world around us Cute cute Thinking back ten years ago 15 September 2008 when the Lehman Brothers collapsed and comrade J and I discussed that this is probably the end of global financial capitalism A few months later Obama got elected and we also thought that this is the end of US imperialism and neoliberalism The joke’s on us since it then was Obama who rescued neoliberal capitalism and expanded US imperialism LOL It was also a good learning curve in terms of understanding that this was the outcome of decades of systematic deregulation of the banking system and that it was again the centre left Bill Clinton who finally repealed the Glass Steagall Act in 1999 So Obama then stacking half his cabinet and team of advisors with former Goldman Sachs and other bankers made only sense By March 2019 the federal reserve already committed 777 trillion tax payer backed money to rescuing the financial system According to some estimates this number has gone up to US 29 trillion while free healthcare of course remains an unaffordable pipelineAnyway the ten year Global Financial Crisis GFC anniversary is an excellent opportunity to try again to get to the bottom of monetary theory and strategies for a progressive and democratic financial system The ‘Production of Money How to Break the Power of Bankers’ VERSO 2018 explores some concrete ideas in which democracies could reclaim control over money production and restrain the out of control finance sector so that it serves the interests of society and the environment What I found problematic and what I will now investigate some over the coming months is the author’s discussion of Keynes’s monetary theory While the centre left historically referred to Keynes’s fiscal policies his monetary theories which are less well understood could provide the basis for a democratic financial system However this is if I understand it correctly essentially based on a critiue of global financial capitalism where the primary contradiction is not between capital and labour but between the national productive economy ‘good capitalism’ and the global financial sector ‘bad capitalism’ which then opens all sorts of right wing and anti Semitic ideological doors Anyway on this in a wee weeks’ time 