THE VALUE OF REDEMPTION: DEBT-FREE MONEY PART 3

Sorry that it has taken me a while to get back to my multi-part series on debt-free money. This is the third part of the current series, although I had previously written several other blogs on the related topics of debt-free money, positive money, and 100% money. See links at the bottom.

This post will focus on the concept of “redemption” as the most fundamental requirement of indebtedness. This seems to confuse readers. For example, Eric Lonergan calls this a “fantastic linguistic contortion”, a “pure semantic confusion”, a “hidden definition slipped in between dashes”.

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The Inaugural Financial Fraud Lemons of the Week Award Goes to DOJ

William K. Black
February 12, 2016     Bloomington, MN

The Bank Whistleblowers United announce the inaugural Financial Fraud Lemons of the Week award.  There can be no more fitting recipient than the ironically named Department of Justice (DOJ).  The “lemon” is used in the economics and criminology literature to refer to a car of surpassingly terrible quality.  The quality is so bad that the car can only be sold through fraud.  We will award it each week to an example of dishonesty or cowardice about financial fraud that is worthy of public ridicule.  We want to leave room in our scale for truly spectacular examples, so this first award will only receive Four Lemons.  The first award is for what has become a routine example of dishonesty and cowardice by DOJ.  Its conduct should be a scandal of national proportions, but by now everyone expects DOJ to embarrass our Nation when it deals with elite bankers.

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Bank Whistleblowers United Covered in NYT

The New York Times has taken notice of Bank Whistleblowers United (BWU). You can read it here.

The Whistleblowers’ Plan Offers Hillary the Perfect Opportunity

William K. Black
February 10, 2016     Bloomington, MN

I am writing as one of the four founding members of Bank Whistleblowers United.  We came together recently to create a detailed plan that could restore the rule of law to Wall Street and dramatically reduce the risk and damage of future financial crises.  We crafted it so that it could be implemented without any new legislation or regulation.  We offered our aid in the implementation process to any candidate who wins the election – and pointed out that President Obama could implement it immediately.  Our plan and approach virtually defines the word “pragmatic.”  It would also transform finance and begin to end its corrupt culture.

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Bill Black on CCTV America

Bill appeared on CCTV America discussing the American economy with Rachelle Akuffo. You can view it here.

Time to Jail the Bankers and Take Back Control over Money

Randy Wray and Bill Black appear on “Clearing the Fog.” You can listen to the podcast here. Bill, of the newly formed Bank Whistleblowers United, speaks about the plan they have outlined to instill the rule of law on Wall Street and end fraud with the hope of mitigating the effects of the next financial crisis. Randy, an expert in financial instability and macroeconomics, speaks about alternatives to the current financial system that would bring greater stability.

Hollywood Glorifies Bankers, Ignores Unsung Whistleblowers

Bill Black reviews the highlights and holes of the film The Big Short in 2 parts on The Real News. You can view part 1 here and part 2 is here. Both have transcripts.

“Any request for loan level tapes is TOTALLY UNREASONABLE!!! Most investors don’t have it and can’t provide it. [W]e MUST produce a credit estimate. It is your responsibility to provide those credit estimates and your responsibility to devise some method for doing so.” [S&P 2001] [emphasis in original]

Pro-Marriage Propaganda: AEI and Brookings’ Plan to Fight Poverty

William K. Black
February 8, 2016     Bloomington, MN

This is second article in my series on the AEI and Brookings report on how to fight poverty.  In my first article I dealt with their plan to oppose any material increase in the minimum wage being hyped by Eduardo Porter in the New York Times as a “bipartisan” plan to “champion an increase in the minimum wage.”  Indeed, Michael Strain, an AEI member of the group continues to attack the minimum wage on the AEI web pages after the release of the report.  I explained that the group was chosen to ensure that it was dominated by New Democrats and hard right Republicans who shared a core belief that poverty was caused by the poor choices of poor people, that it was verboten to even discuss how the economic and political system was rigged, and that a “new paternalism” aimed against the poor was essential.  The word “rigged” never appears in the report though it is a dominant feature of any progressive critique of poverty.

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Chinese Communists and Wacko U.S. Right Want to Save us from Effete Males

William K. Black
February 7, 2016     Bloomington, MN

The New York Times has produced a wonderful, unintended, juxtaposition in their pages on February 6, 2016.  Two articles report on think tanks calling for the government to engage in right-wing propaganda campaigns to restore “manly” men.  One article discusses the Chinese think tanks that have convinced the (Communist) government to engage in a massive propaganda campaign.

Worried that a shortage of male teachers has produced a generation of timid, self-centered and effeminate boys, Chinese educators are working to reinforce traditional gender roles and values in the classroom.

This is how the article begins:

FUZHOU, China — The history class began with a lesson on being manly.

Lin Wei, 27, one of a handful of male sixth-grade teachers at a primary school here, has made a habit of telling stories about warlords who threw witches into rivers and soldiers who outsmarted Japanese troops. “Men have special duties,” he said. “They have to be brave, protect women and take responsibility for wrongdoing.”

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Money and Banking – Part 5: FAQs about central banking

By Eric Tymoigne

Previous posts studied the balance sheet of the Fed, definitions and their relation to the balance sheet of the fed, and monetary-policy implementation. This post answers some FAQs about monetary policy and central banking. Each of them can be read independently.

Q1: Does the Fed target/control/set the quantity of reserves and the quantity of money?

The Fed does not set the quantity of reserves and does not control the money supply (M1). It sets the cost of reserves; that is it.

In terms of reserves, the Fed was created to provide an “elastic currency,” i.e. to provide monetary base according to the needs of the economic system in normal and panic times. It would be against this purpose to implement monetary policy by unilaterally setting the monetary base without any regards for the daily needs of the economy system.

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