Posted: Apr 01, 2013 2:02 pm
GT2211 wrote:@Panderos
Frances Coppola wrote about money creation and PM here.
http://coppolacomment.blogspot.co.uk/20 ... -debt.html
Thanks...but getting confused already.
He says
Coppola wrote:Positive Money correctly describe the way bank lending works
Which is not what Blackadder is saying. He then goes on to describe houses and gold as savings and says savings = debt based on this principle. Sounds a bit dodgy. Sure savings = debt by definition, but not because houses are savings.
He then says..
Coppola wrote:The accounting entries for a new bank loan for £10,000 are as follows:
Customer loan account: £10,000 DR
Customer deposit account: £10,000 CR
It is not possible to distinguish in any meaningful way between a deposit created from a bank loan and a deposit made by the customer.
No involvement of outside parties there. Yet Blackadder said
Blackadder wrote:If you "create" an account, i.e. a deposit, the money that goes into that deposit has to come from somewhere outside the bank (if it's a genuine deposit).
