Sign Massachusetts Banking IOU Later

Adapt currency deed

Richard when you think about inequality inequality in the UK and it's a hot topic and you think about as you'd like the banking sector to be decentralized flatter structure more resilient how do you begin to talk to the public or the political class about achieving those goals essentially you know if we want to produce something we need funding so there was a role for banks in almost everything that's happening in the economy but what exactly is that role adjust quickly I'd like to reflect on that banks are being thought of as intermediaries but not really what's happening banks what are they they're creators of the money supply so you're firmly of the view that banks create money out of thin air yes well I produced the first empirical studies to prove that in the 5,000 year history of banking banks are thought of as deposit-taking institutions that lend money the legal reality is banks don't take deposits and banks don't lend money so what is a depositor deposit is not actually a deposit it's not a bailment it's not held in custody at law the word deposit is meaningless the law courts and various judgments have made very clear if you give you money to a bank even though it's called a deposit this money is simply a loan to the bank that's true yeah so there is no such thing as deposit at a badly named them so banks borrow from the public okay so that much we've established what about lending surely they're lending money no they don't banks don't lend money banks again at law it's very clear they're in the business of purchasing securities that's it so you say okay don't you know confuse me with all that legalese you know I want a loan I want a loan fine here's the long contract here's the offer letter and you sign at law it's very clear you have issued a security namely a promissory note and the bank is going to purchase that that's what's happening put it in layman's terms what does that mean it means that what the bank is doing is very different from what it presents to the public that it's doing how does this fit together so you say fine the bank purchase is my promissory note but how do get my money I want you know it what's your good ground right now don't care about the details I want the money the bank will say well you'll find it in your account with us that would be technically correct if they say we'll transfer it to your account that's wrong because no money is transferred at all so really from anywhere inside the bank or outside the bank why because what we call a deposit is simply the bank's record of its debt to the public now it also owns you money and its record of the money it owes you is what you...