by Summary:
Money can be an ILLUSION...
Topics:
Steve Keen considers the following as important:
This could be interesting, too:
Money can be an ILLUSION...
Topics:
Steve Keen considers the following as important:
This could be interesting, too:
New Economics Foundation writes Is the Labour government delivering on its promises?
Robert Vienneau writes Why Is Marginalist Economics Wrong?
John Quiggin writes Dispensing with the US-centric financial system
New Economics Foundation writes Whose growth is it anyway?
| Money can be an ILLUSION... |
When you do barter, money plays no role at all in an economy, because it will not be needed.
Barter is the immediate compensation of both sides.
If only one side gets what it wants and the other side will be compensated some time in the future, we don't call it "barter", we call it "debt".
So the idea of a "medium of exchange" is a complete misunderstanding of what money is about: it is a bookkeeping system of debt in an economy/society.
This is why only the numbers are important and why numbers in a computer, on a piece of paper or as an imprint of a gold coin are fully compatible to each other: it is only about counting.
And debt is not created when a bank gives a loan but when the money from the loan is spent: the debtor and buyer owes to the seller to accept the money and sell something in return. This is why the banks demand the money to be returned though it costs them nothing to create it.