[p2p-research] Who Issues the Money that National Governments then Borrow?

[Kevin Carson]

On 7/16/10, Ryan Lanham <rlanham1963 at gmail.com> wrote:
> You are one of those privileged people.  All you need do is borrow some
> money based on collateral or your capacity to repay (e.g. from income)...and
> voila...you've created money!  It is exactly the way anyone else does
> it...governments included.

In other words, you're creating money that you have to pay interest
on--despite the fact that it is not money created by the abstention of
the "lender," but lent into existence out of thin air by government
altering the amount that can be lent against a given amount of
reserve.  When gov't tells a bank "Surprise!  You can suddenly lend
out another $100,000 more against the reserves you already have,
without sinking a penny of your own money," the interest they collect
on the new "loans" is just free money.  If we're "privileged" by being
able to borrow (at interest) money that cost them nothing to "lend" --
especially when government could just as easily have deposited the
same amount of money into existence interest-free -- how privileged
are they to be collecting interest on it?

When the seller justifies his price in terms of how much the consumer
benefits and how much it would cost him to do without, rather than
what it costs the producer to provide the benefit, you know you've got
a rigged game.  You're dealing with an administered pricing system
where the seller can tailor the price to just enough below utility to
the consumer to keep the consumer coming back, without any market
competition to drive price down to production cost.

-- 
Kevin Carson
Center for a Stateless Society http://c4ss.org
Mutualist Blog:  Free Market Anti-Capitalism
http://mutualist.blogspot.com
The Homebrew Industrial Revolution:  A Low-Overhead Manifesto
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Organization Theory:  A Libertarian Perspective
http://mutualist.blogspot.com/2005/12/studies-in-anarchist-theory-of.html