@TIMGOLDFINCH
and 9 others
Easier to remember that all cash (currency) is money, but not all money is cash and better to think of money as a medium of exchange, unit of account and standard of deferred payment.
2:03 PM · Feb 21, 2020·Twitter for iPad
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GrubStreetJournal
@GrubStreetJorno
·
6m
Replying to
@jbhearn

@EdgarWortmann
and 10 others
And then came the Wolves. Jefferson and Franklin. Paper is Poverty. “If once they become inattent…
”There is no Science, the Study of which is more useful and commendable than the Knowledge of the true Interest of one’s Country; and perhaps there is no Kind of Learning more abstruse and intricat…
notthegrubstreetjournal.com
Richard Werner
@scientificecon
·
Feb 21
Replying to
@jbhearn

@EdgarWortmann
and 9 others
Not true. International accounting standards say: current account bank deposits are “cash” money. Also, central bank notes are promissory notes, ie. credit.

Reflecting this reality, we get:
All cash is credit. All money, except gold, is credit.

The importance of credit creation
TIM GOLDFINCH
@TIMGOLDFINCH
·
Feb 21
Now Richard , you know I support a lot of what you say & agree with most , but current account= cash is bollocks .
And I rest my case by the fact that the international accounting standards ( popular with MMT) disagree!
All CB notes are “promissory” agree but not credit >
TIM GOLDFINCH
@TIMGOLDFINCH
·
Feb 21
There is a difference between the medium of exchange being supported by a promise and a loan being supported by a promise to repay . The former develops the note into a medium of exchange ( that every man in the street accepts as cash) an the latter a debt >
TIM GOLDFINCH
@TIMGOLDFINCH
·
Feb 21
you must have more varying confidence in .I wonder if the the people in China see it as the same ?
dr.menendez
@renee_menendez
·
Feb 21
Replying to
@jbhearn

@EdgarWortmann
and 10 others
Maybe it is appropriate to distinguish between currency (cash) and the reference to currency. A credit is an arrangement, where the object of negotiation is currency. => Credit is on a meta-level to currency – therefore it is not appropriate to identify credit and currency.
John Hearn
@jbhearn
·
Feb 21
Almost right……where the object of negotiation is a claim on currency and it is most appropriate to separate the currency and credit components of money.
EWortmann
@EdgarWortmann
·
Feb 21
The object of negotiation is not necessarily a claim to money. It is expressed, however, in the currency: the general unit of value.
John Hearn
@jbhearn
·
Feb 21
Correct, it is a claim on currency as well as monetary measure.
dr.menendez
@renee_menendez
·
Feb 21
Due to the hierarchical relation of credit and currency one must note, that money in the meaning of Mxyz is not a well defined entity, because it consists of an object (currency) and claims on that object (deposits). It is more a proxy variable to map purchasing power…
John Hearn
@jbhearn
·
Feb 21
Clever use of the double entendre “note”
Marc Stevenson
@stevensonmarc1
·
Feb 22
Replying to
@jbhearn

@EdgarWortmann
and 10 others
It also has the fabulous advantage of making the transaction anonymous.

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rogerglewis on February 22, 2020 at 10:59 am said:
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https://youtu.be/ngr-ql2NzqU turn on auto translate to english if you do not speak German

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rogerglewis on February 22, 2020 at 11:41 am said:
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“Much of this can be difficult to come to terms with. The idea that money is simply created out of thin air is alien to our way of thinking. I doubt this is accidental. My feeling is we’re schooled this way deliberately so our thoughts won’t stray towards grasping the true nature of the society imposed upon us. I have read the suggestion from (Professor Henry C. K. Liu) that when this gets properly understood it’ll be as significant as grasping that the Earth isn’t flat or that it goes around the sun.

I agree. I think the true dark ages are those we’re living in now.

Bill Kruse – http://www.economania.co.uk/various-authors/various-authors.htm
– Permission granted to freely distribute this article for non-commercial purposes if attributed to Bill Kruse, unedited and copied in full, including this notice.

http://bibocurrency.com/index.php/downloads-2/14-english-root/105-passive-bibo-currency-distinguishing-claims

https://medium.com/@alexanderdouglas/keen-and-mosler-on-mmt-35d7cb7b2b68