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/ Google Poll Introduction / GP #1 / GP#2
This is <<http://www.primeronmoney.com/internetcreatingmoneyoutofthinair.html>> We are trying to find out what people think about the phrase, “Creating money out of thin air”. |
This is a research project in the form of a “poll’ of current thought about internet writing which uses the phrase “creating money out of thin air” This page lists (more or less) (A) the summaries of the 100 articles as returned by Google, (B) links to the articles at each website, and (C) Our initial reaction to the first 14 articles. Start here GP#1 to read each Google Poll article on this website along with our analysis. Follow the "GP#" links at the top of each page to find a detailed analysis for each article. We stopped our full analysis at #27, because we think we covered enough information to make our points. Go to Google Poll # 1 to 10 / 11 to 20 / 21 to 30 / 33 to 40 / 41 to 50 -- to read the full articles on this website without our analysis Conjecture My Bias The results of the search will now be read and compiled in some sort of report analyzing the writing at these links. The first 3 entries have been analyzed as of July 24, 2009 -- we will continue and will probably finish in one month. We have no idea about how accurate or valid our analysis will be -- primarily because as far as we know, this is the first time this sort of polling on a certain subject was done this way. (mrc) Please do not blindly accept our analysis -- go to the websites and analyze the articles yourself -- in accordance with Buddha’s dictum “Believe nothing, no matter where you read it, or who said it, no matter if I have said it, unless it agrees with your own reason and your own common sense.” See one of the first entries we looked at -- it is from the NY Times <<http://www.primeronmoney.com/googletest.html>> It is GP #3 below. Here is article GP #12 -- a typical misleading article that is leading the public astray. More search results and short reactions start below. We will analyze each article in depth later on. |
Search Results on Google / July 15, 2009 / for"Creating money out of thin air" + banks 1. How Banks Make Money :: Creating Money Out of Thin Air :: See How ... Once you see the graphic at the above link -- go to the next link -- and see how it really works. http://www.primeronmoney.com/how-banks-make-money.html Initial Reaction -- This is a professional magazine article. It presents a completely erroneous description of “How Banks Make Money” suggesting that banks can lend out 90% of the deposits they have on hand. In fact, as we explain in this book, each bank can lend out 10 times the total amount of money they have in deposits and the stockholder’s capital investment. This magazine is presenting a common error, first generated by the Fed., and still being spread as of this writing in July 2009 by wikipedia. It is a wrongheaded view of (a) the law and (b) what banking is all about. 2. Creating Money Out of Thin Air!!! | Economic Policy | Bob McTeer ... Initial Reaction -- This article is written by someone who “ ... ran the Baltimore Branch of the Richmond Fed, “ and “taught a graduate course in Money and Banking at Johns Hopkins University”. In my opinion this is a well-meant but trivial article that sheds no light on how banks and money really work. He writes, for instance -- “Money creation doesn’t cause inflation until it is spent.” -- now what does that mean? And he writes "new wealth is not being created in the process" (of money creation). That conveys almost nothing. Had he put the two ideas together and written "new wealth can't be produced until the newly created money is spent" -- he would have been on track. It would have been worthwhile if he explained how the Fed created money by buying bonds -- which they really do not do. The money, as we see it, is created when the treasury accepts the check from the Fed for the government bonds and gives the Fed printed money which the Fed can spend on whatever the Fed fancies. The writer sees the difficulty in understanding how money can be legitimately created -- but he never rises to the challenge of a clear explanation. (mrc) 3. Fed Will Inject $1 Trillion More Into the Economy - NYTimes.com Initial Reaction -- Written by Edmund L. Andrews a fine writer for the NY Times which probably has the most accurate information on Money and Banking. This article makes a number of assumptions that may or may not be correct and should be scrutinized. We will analyze the article more fully on our website and put the link here. For now do the analysis yourself. 4. Creating Money Out Of Thin Air | Daily Markets Initial Reaction - This is a rather mild complaint abut the Fed and the system of having banks create money out of thin air. He at least shows that he knows something about the multiple created by the system when he tells that "75 billion = 675 billion available for lending ..." which means the commercial banks wind up lending nine times more money than the Fed created. That is somewhat correct -- but not really. It is, at least, closer to correct than all of the sites that tell you the banks can lend 9/10 of the money they have -- when the truth is that they can lend at least 10 times the money they have -- and in reality they can lend ANY amount as long as they can find reliable borrowers. Remember -- the banks actually create the money the money for each loan they make -- they do not have to have the money on hand. This will be explained in detail later on. All the dollars that exist in the world were made by banks --- either the Central Bank (The Federal Reserve) -- or the bank nearest your home. 5. The Central Bank of England is creating money out of thin air ... The Central Bank of England is creating money out of thin air! March 8, 2009 by wordgeezer · American Free Press. March 6. 2009 ... Initial Reaction -- this is a duplicate of #4 above. 6. How Banks Make Money :: Creating Money Out of Thin Air :: See How ... Initial Reaction -- this is a duplicate of #1 above. This shows one of the minor problems with Google searching. People copy interesting articles and repost them elsewhere, thus magnifying their errors when they are erroneous. 7. Creating Money out of Thin Air | Fun Life Development Initial Reaction -- This is beside the point of the money system -- but he makes a good point about personally creating money by applying a clever plan and human effort. 8. Socialist Standard January 2009 Page 12 / Published since 1904 - Journal of The Socialist Party of Great Britain - Companion party of The World Socialist Movement / An urban myth is circulating on the internet that banks have been creating money out of thin air. Banks, money and thin air ... Initial Reaction -- This article is quite long and is almost correct (in the sense that 2 + 2 is almost 5). Because fact is mixed with fiction it is very hard to respond-to completely. We suggest you read the article and reserve judgment until you read the rest of our book, where we hope to clear things up. 9. Out of Thin Air: How Money is Really Made / LiveScience / by Jeremy Hsu Initial Reaction -- this longish article covers more than creating money. In the part about creating money, it precisely repeats the error we tell about, in #1 above. That error was started by the Fed and is being continually spread, to our horror, by Wikipedia. Check this link.http://en.wikipedia.org/wiki/Fractional_reserve_banking In the section of the article under consideration, titled "Virtual cash", it presents "Banks then get down to the business of creating money by lending it out. Assume that you put $100 in your bank account. The government requires banks to hold a certain amount in reserve, say 10 percent, so the bank may just take $90 and lend it out to someone else. That person can then buy something with the $90. The store deposits the $90 in another bank, and the lending process continues to inflate the original $100." That scenario seems more ridiculous every time we read it. Try it with your friends -- lend one of them $100 with the proviso that they have to lend $90 to another friend -- continue this with a chain of 10 friends and see if you wind up with more than the original $100. If this works the way wikipedia says it does -- you and your 10 friends should jointly wind up with considerably more than $100. Some very serious people believe the nonsense. By the way -- wikipedia will not take this information down from their website -- probably because they got (or think they got ...) the information from a Federal Reserve Publication. They refer to "Page 57 of 'The FED today', a publication on an educational site affiliated with the Federal Reserve Bank of Kansas City) designed to educate people on the history and purpose of the United States Federal Reserve system.<< http://www.federalreserveeducation.org/fed101/fedtoday/FedTodayAll.pdf >>. Also see the following at wikipedia (Note the quotation marks) "... An explanation of how it works from the New York Regional Reserve Bank of the US Federal Reserve system. Scroll down to the "Reserve Requirements and Money Creation" section. Here is what it says: "Reserve requirements affect the potential of the banking system to create transaction deposits. If the reserve requirement is 10%, for example, a bank that receives a $100 deposit may lend out $90 of that deposit. If the borrower then writes a check to someone who deposits the $90, the bank receiving that deposit can lend out $81. As the process continues, the banking system can expand the initial deposit of $100 into a maximum of $1,000 of money ($100+$90+81+$72.90+...=$1,000). In contrast, with a 20% reserve requirement, the banking system would be able to expand the initial $100 deposit into a maximum of $500 ($100+$80+$64+$51.20+...=$500). Thus, higher reserve requirements should result in reduced money creation and, in turn, in reduced economic activity." The link to this page is: http://www.newyorkfed.org/aboutthefed/fedpoint/fed45.html (that link appears to be dead (mrc) There is no #10 11. Safehaven | Money Created "Out of Thin Air" | Printer Friendly Version Initial Reaction -- this is by Richard Benson who certainly seems to know what he is talking about. He says " We hope this brief essay stimulates your thoughts with respect to how money is created - a secret all investors should know. Money is created in two ways: First, money creation comes from borrowing it and spending it. (Money is literally borrowed and spent into existence.) Second, it can simply be printed up "out of thin air" by a central bank. The U.S. economy and other modern economies have central banks and fiat currencies. Central banks have two major powers. They can 1) "peg" the nominal level of short-term interest rates, and 2) purchase assets such as government debt, with newly printed money. When the central bank pegs short-term interest rates at a low level, it greatly encourages corporate and individual borrowing and spending. For the past decade, most money has been created through private sector borrowing and spending. However, the day is fast approaching when the private sector's new borrowing will not create enough new money to keep servicing the already massive level of old debt. Central banks will need to step up their efforts to "print money out of thin air". Central bank printing of new money is accomplished by purchasing government debt or other assets." ... Money Created "Out of Thin Air" by Richard Benson / August 2004 We intend to copy this entire article and put it on our website so we can read it over a few times. Some of it is quite complicated -- I certainly do not understand all the complexities. (mrc) 12. Money Out of Thin Air Initial Reaction -- This is 12 pages that is more or less of a well written -- but very a hard-to-follow rant that ends with "The Mandrake Mechanism by which the Fed converts debt into money may seem complicated at first, but it is simple if one remembers that the process is not intended to be logical but to confuse and deceive. The end product of the Mechanism is artificial expansion of the money supply which is the root cause of the hidden tax called inflation" I think the first sentence in that quotation is absolutely correct and very perceptive -- it took me years to come to that conclusion. The second sentence (the one in blue) is quite radical and hard to believe. The Fed tries to cause inflation!?. But, on second thought, that is logical. Contrary to common opinion, when considering inflation as being a sharp and somewhat prolonged reduction in the value of money, inflation appears to hurt wealthy people more that common laborers because the wealthy among us have most of their wealth tied up in (a) money, (b) things that generate money and (c) things that can be easily converted to money (jewels, real estate, and the like). On the other hand laborers have only their muscles, backs and brains -- which can always and only be sold for market prices. When money loses its value -- it is the wealthy that, at first, appear to lose a step -- but they can always come back easily and quickly by cheaply buying up the small amount of wealth the laborers have cobbled together to rise above subsistence. So, in the long run, one could make a good argument that boom and bust cycles benefit the wealthy elite more that periodic inflation hurts them. This report presents this interesting "SUMMARY" -- "The American Dollar has no intrinsic value. It is a classic example of fiat money with no limit to the quantity that can be produced. Its primarily value lies in the willingness of people to accept it and, to that end, legal tender laws require them to do so. It is true that our money is created out of nothing, but it is more accurate to say it is based upon debt. In one sense, therefore, our money is created out of less than nothing. The entire money supply would vanish into the bank vaults and computer chips if all debts were repaid" That summary gives a very shallow and mostly incorrect picture of what we have. There is far more than debt in this world. Much of the money that was ever created out of thin air left behind wealth of all sorts (bridges, homes buildings, roads and everything we have, including tons of money not beholding to debt). If the money were to vanish -- we might have a very good world left behind. maybe we'd figure out how to better use all that wealth we have. 13. Money out of Thin Air Initial Reaction -- this article is written by Mogambo Guru -- the pen name for Richard Daughty of the "Daily Reckoning". He laughed himself silly while writing the article we are analyzing in 2003, when he warned that the Central Banks were going berserk and printing more money that could ever be absorbed by all the world's economies. His claim is that all of the Nation's banks-- had, at that time, 1 cent in reserves for every dollar in circulation and we are in for a terrible shock when all that money (a) finds its real value and declares it doesn't want to work anymore for such stupid people and such a poor return on itself. Great reading. 14. Dorf on Law: Money Out of Thin Air Initial Reaction -- Written by Neil H. Buchanan, evidently a smart guy who knows his way around an economics book and a law book. You can get a good idea of his prowess by his lead paragraph -- herewith reproduced "In a guest column on FindLaw appearing later today, I take on the questions of whether the Fed is printing money “out of thin air” and, if so, whether that is bad. (Answers: (1) Yes, because that is how money is always created. (2) No.) In that column, I pick up on an argument that I mentioned in passing in a Dorf on Law post back in April: Doesn’t the Fed cause inflation when it increases the money supply? In my FindLaw column, I set aside the intervening steps of the argument and simply point out that reality has been very unkind to the argument that inflation and money creation are directly related. In this post, I’ll discuss those intervening steps to show that the Fed’s current policy is both sensible and reversible." He is right on both answers. From here on down -- We decided not to write the analysis for each report as we go. We are instead downloading the first 50 of these reports and will analyze them when we have them all in hand. Chances are we will bind them all into a multi book report and put them in a local library for reading by the interested public. If they prove popular, we will offer them to more libraries -- Free. Each library can down load the reports from our site and print them locally for their library shelves. there are some high-powered reports among these from some influential people. Go to Google Poll # 1 to 10 / 11 to 20 / 21 to 30 / 33 to 40 / 41 to 50 -- to read the full articles on this website without our analysis 15. The World Socialist: Banks, money and thin air 16. How is Money Created? Debunking Some Myths About Recent Policies ... 17. Gold Buying will continue as money is created out of 'thin air ... 18. The ACTivist magazine - Money from Nothing: Supplying Money Should ... Commercial banks would, without doubt, resist this change. If they lose the privilege of creating money out of thin air, they'll be competing on the same ... http://activistmagazine.com/index.php?option=content&task=view&id=1043&Itemid=143 20. 21. 22. 23. There was a video here -- but it is there no longer (mrc) 24. 25. 26. 27. We have downloaded all the reports to here -- and will continue -- would you like to help? Some of these reports are very good. 8/16/09 / Together, they will make a wonderful source of good and horrid thinking on the subject. They are not yet all analyzed Go to Google Poll # 1 to 10 / 11 to 20 / 21 to 30 / 33 to 40 / 41 to 50 28. 29. This is a duplicate of the above email group. (mrc) 30. 31. 32. #32 is the same as #31 (mrc) 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 48. This is a duplicate of #46 ???? 49. 50. We are stopping here for a while (8/16/09) -- because 50 is a good round number and this seems to be getting repetitive and /or trivial. (mrc) Here is a bonus --- Rep Kucinich wants to add something GOVERNMENT SHOULD ISSUE DEBT-FREE MONEY, SAYS DENNIS KUCINICH Posted By: watcher51445 <Send E-Mail> Congressman Calls for Debt-Free Dollars An Ohio congressman has called on the federal government to take back the power to issue money from the Federal Reserve, the private central bank that, along with Wall Street, is to blame for plunging the world into an economic crisis not seen since the Great Depression of the 1920s and 1930s. “The Federal Reserve [is] no more federal than Federal Express,” said Rep. Dennis Kucinich (D-Ohio) on the floor of the House of Representatives on Jan. 26. “It’s a collection of private bankers that was established in 1913 ARTICLE CONTINUES BELOW ---------------------------------------------------------- GOVERNMENT SHOULD ISSUE DEBT-FREE MONEY, SAYS DENNIS KUCINICH ---------------------------------------------------------- Kucinich called on the federal government to institute monetary reform beginning by issuing debt-free money-dollars that have not been loaned into circulation at interest by banks. “We can take a new direction, and that new direction must include monetary reform,” said Kucinich. Kucinich quoted monetary theorist Stephen Zarlenga, the author of The Lost Science of Money, saying, “the bulk of our money is not created by our government, but by banks when they make private loans.” Kucinich quoted the Constitution as authorizing the government to be the sovereign power to issue money. “Because of this monetary crisis,” he said, “we have an opportunity here. Instead of giving private bankers more power, we need to incorporate the Federal Reserve into the Treasury where all new money could be created as government money, not as interest-bearing debt.” He also said the government needs to halt the banks’ privilege of creating money out of thin air by ending the fractional reserve system. “Past monetized private credit would be converted into government money,” he said. “Banks would continue to do what people think they do now under this new approach,” he said. They would only act as intermediaries by accepting savings deposits and loaning that money or their own cash out to borrowers. “And what would the government do?” he asked. “Well, we wouldn’t have to borrow money and continue to owe money to the banks to finance the needs of this country.” The proposal came during an hour-long speech by Kucinich, who offered fierce criticism of the banking industry in general, saying that bankers shamelessly exploited legislation, which was supposed help Americans avoid bankruptcy, in order to get free money from taxpayers. “It turned out to be a windfall for banks,” said Kucinich. “But hold onto your hat, Mr. and Mrs. America, because the banks are not done. They’re going to be looking for even more money, [and] they’re using this opportunity to game the system.” Kucinich also had choice words for speculators. “We’ve seen speculation driving this economy. An economy built on gambling, and not real production, is not sustainable. Moving to a financial sector as a source of profits is an unsustainable Ponzi scheme,” he said. “Remember that this time in our national experience is all about taking wealth from the great mass of the American people-from your paychecks, wallets and pocketbooks-and just moving it right to the top,” he said. “We’re in a world of debt, creating more and more debt in a debt-based economy,” said Kucinich. “And the pros, who put us in this mess, refuse to admit that debt is the problem that put us here.” The current situation is unique, Kucinich said, because never before in American history have we seen so much debt. “The growth of our public and private debt from $10.5 trillion to $43 trillion during Alan Greenspan’s tenure from 1987 to 2006 gives us some sense of the real magnitude of the problem,” he said. The Federal Reserve knew this financial meltdown was on its way. “Yet we saw Greenspan pretend he didn’t have a clue,” he said. “The Fed didn’t do its job.” “Under those circumstances,” Kucinich asked, “would Americans want the Fed to have more power? “Someone has to stand up for the American taxpayers, and say, ‘Stop it,’ “ he said. “We have to get control of this Federal Reserve.” 51. We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 52. We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 53.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 54.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 56.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 57.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 60.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 61.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 62.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 63.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 64.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 65.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 66.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 67.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 68.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 69.We stopped analyzing at #27 --- because we thought we had enough data to make our points. 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(mrc) You can read on -- the links below are live. 82.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 83.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 84.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 86.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 87.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 88.We stopped analyzing at #27 --- because we thought we had enough data to make our points. 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(mrc) You can read on -- the links below are live. 95.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 96.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 97.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 98.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 99.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. 100.We stopped analyzing at #27 --- because we thought we had enough data to make our points. (mrc) You can read on -- the links below are live. Contact me at, martycarbone@yahoo.com |