[p2p-research] Fwd: Where does the "lost" money go ? can we find it and get it back ?

[Michel Bauwens]

Hi Nicholas,

Does the money have to 'go' anywhere ...

Since it is created 'out of nothing' through fractional reserve banking, why
can't it be destroyed just as easily, in the equivalent of a virtual fire?

I understand from some remarks, 'the bailout won't create inflation because
it's merely trying to replace lost money', that this money was effectively
destroyed.

Perhaps monetary transformation expert Thomas Greco has some insight to your
question?

see also http://p2pfoundation.net/Category:Money

Michel

On Sun, Jan 4, 2009 at 12:05 AM, Nicholas Roberts <
nicholas at themediasociety.org> wrote:

>
> --
> Nicholas Roberts
> [im] skype:niccolor
>
>
>
> ---------- Forwarded message ----------
> From: <nicholas at themediasociety.org>
> Date: Sat, Jan 3, 2009 at 5:16 PM
> Subject: Re: Where does the "lost" money go ? can we find it and get it
> back ?
> To: Dean Baker <dean.baker1 at verizon.net>
> Cc: Noam Chomsky <chomsky at mit.edu>
>
>
> happy new year Dean
>
> who takes it out of circulation ? how ?
>
> is it destroyed ? made null ?
>
> how much of the wealth from a bubble gets accumulated by the rich
> promoting the bubble ?
>
> how much gets taken out of circulation ?
>
> is there a good reference to this ? a website or book ? I am
> interested in the formal process and also the reality...
>
> thanks in advance
>
> -N
>
> On 1/3/09, Dean Baker <dean.baker1 at verizon.net> wrote:
> > Hi Nicholas,
> >
> > It's just like counterfeit money that has been seized by police. It is
> > wealth that is taken out of circulation. It means in principle that the
> > people who did not own stock and did not lose wealth can be better off,
> > assuming that the demand generated by this stock wealth (people spend in
> > part based on the wealth they hold in stocks) is replaced by other
> sources.
> >
> > regards,
> >
> > dean
> >
> > Nicholas Roberts wrote:
> >> hi Dean
> >>
> >> this is a really obvious question, but I have yet to find a good answer;
> >>
> >> where does the money "lost" in the stock and housing bubbles go ?
> >>
> >>
> >> is it destroyed ? how and where ?
> >>
> >> is it transferred ? how and where ?
> >>
> >> is it accumulated ? by whom, how, where  ?
> >>
> >> can we get it back ?
> >>
> >>
> >> are there any good flow diagrams that explain this in plain terms for
> >> regular folks...
> >>
> >>
> >>
> >>
> >>
> >
> > --
> > Dean Baker (baker at cepr.net)
> > Co-Director
> > Center for Economic and Policy Research 1611 Connecticut Ave., NW
> > Washington, DC 20009
> > 202-293-5380 (ext 114)
> > 202-332-5218 (H)
> > www.cepr.net
> >
> >
> >
>
>
> --
> --
> Nicholas Roberts
> [im] skype:niccolor
>
>
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>
>


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