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

[Ryan Lanham]

On Tue, Jul 20, 2010 at 3:38 PM, Kevin Carson <
free.market.anticapitalist at gmail.com> wrote:

> 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 you feel this way, start a bank and lend money without interest.  It
could be done.  Any credit union could do it.  Why don't they?

R.
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