Monday 21 November 2011

Video games. Our economy is an HFT video game

Money doesn't go clink or crumple any more. It goes beep.

Banks can create money, i.e. debt, at the press of a button. There's got to be something wrong with that. Now that debt is out of control, the governments of the world want to make money even more of an abstract notion.

It'll be extra abstract for us. As in, they got it, and we don't.

I thought "that's the meaning of the following video" as well. Either that or it hints at a better time when women who dared go in public were looking for a good time.
Here's a lady who was made by committe to please old-fashioned guys who think with their boners when they buy music. A sure success. New name, too: Lana Del Rey. Hints of Brazil, without the booty-shaking. She's designed to fill the gap after the loss of Amy Whinehouse, who was an artist.
[Watch the lips. Talking about video games.]

checkitout:
Money has been privatised by stealthThe greatest privatisation in history has gone unnoticed. It's time to take from the banks the power to produce money
o Ben Dyson
o guardian.co.uk, Tuesday 15 November 2011 10.47 GMT
It's common knowledge that printing your own £10 notes at home is frowned upon by Her Majesty's police. Yet there's a small collection of companies that are authorised to create – and spend – more new money than the counterfeiters have ever been able to print. In industry jargon, these companies are called "monetary and financial institutions", but you probably know them by their street name: "banks".
The money that they create, effectively out of nothing, isn't the paper money that bears the logo of the government-owned Bank of England. It's the electronic money that flashes up on the screen when you check your balance at an ATM. Right now, this electronic money makes up over 97% of all the money in the economy. Only 3% of money is still in that old-fashioned form of real cash that can be touched.
Hard to believe, isn't it? Martin Wolf, one of the experts who sat on the independent commission on banking, put it bluntly, saying in the Financial Times that "the essence of the contemporary monetary system was the creation of money, out of nothing, by private banks' often foolish lending".
Here's how it works. When you ask the bank for the money to buy a one-bedroom box in London, the money that appears in your account isn't borrowed from some prudent grandmother's life savings. In fact, the bank simply types those numbers into your account, creating brand new money that you can now spend. As other banks do exactly the same, the amount of money in the economy grows and grows. Every new mortgage creates new money, which pushes up house prices just a little more and forces the next buyer to borrow even more from the banks. (A more detailed and fully-referenced explanation of this process is given in the book Where Does Money Come From? published by the New Economics Foundation.)
....Of course, the flipside to this creation of money is that with every new loan comes a new debt. This is the source of our mountain of personal debt – not money that had been prudently saved up by pensioners, but money that was created out of nothing by banks and lent to anyone and everyone. Eventually the debt burden becomes just too high, and we see the wave of defaults that triggered the start of the ongoing financial crisis.
....This brings us to a very simple solution to the financial crisis. Many of the current protesters might be surprised to hear that the answer to our current crisis comes from a former Tory prime minister. Back in 1844, Sir Robert Peel realised that metal coins, which at that time were the only legal form of money, had been superseded by new paper notes issued by banks. These paper notes were lighter and more convenient, and therefore much more popular. Peel's 1844 Bank Charter Act took the power to create paper money away from the banks and placed it back under control of the Bank of England. We should now do exactly the same with the power to create electronic money. My own organisation, Positive Money, has even drafted the legislation that would be required to do this.