A conversation with Dr. Richard Werner who did the experiment that proved banks create $$ with loans - Politics Forum.org | PoFo

Wandering the information superhighway, he came upon the last refuge of civilization, PoFo, the only forum on the internet ...

Everything from personal credit card debt to government borrowing debt.

Moderator: PoFo Economics & Capitalism Mods

#15011175
1 hr. 20 min.
In 2014 the study was published. Dr. Werner found a German bank that would lend him 200,000 euros and move it to his regular bank account in a different bank, and let several graduate students watch the bank's officers as the transaction was made to see exactly how the bank did it.
. . Long story short, the money was created, it was not moved from one account in the bank's books to the Dr.'s account. The bank didn't even check if they had enough money or reserves to make the loan.



Dr. Werner thinks this should settle once and for all the argument on this point.

.
#15011541
Steve_American wrote:Dr. Werner thinks this should settle once and for all the argument on this point.

The "argument" could have been settled by consulting any good accounting textbook that describes banks' journal entries: loan proceeds (the borrower's new money asset) are a newly created liability for the bank that balances the bank's newly created loan asset (the borrower's new liability). They are not taken from any other account.
#15011654
Truth To Power wrote:The "argument" could have been settled by consulting any good accounting textbook that describes banks' journal entries: loan proceeds (the borrower's new money asset) are a newly created liability for the bank that balances the bank's newly created loan asset (the borrower's new liability). They are not taken from any other account.

I'm sure this is true.
However, the argument has been ongoing according to the video for over 100 years.
For me, this is just proof that economics has a strong tendency to decide what it wants to prove/believe/tell-the public first and then set out to find a way to "prove" that.
this is NOT how a science is supposed to operate.
.
The Evolution Fraud

Yes, a presumption with no sound evidence. I ju[…]

EU-BREXIT

Corbyn just wants to be PM. And he will, especia[…]

https://m.youtube.com/watch?v=N4wDE1_[…]

2% target inflation is generally an invention by r[…]