The myths about money that British voters should reject

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The myths about money that British voters should reject

Post by Mary_FV on Tue Jun 06, 2017 3:32 am

The economy is held back by persistent illusions – such as the idea Britain spends a lot on welfare...

https://www.theguardian.com/commentisfree/2017/jun/01/myths-money-british-voters-economy-britain-welfare
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Re: The myths about money that British voters should reject

Post by Absolut on Tue Jun 06, 2017 7:19 am

That's not the biggest myth voters should reject lol.

From the horse's mouth - the Bank of England:

Commercial banks create money, in the form of bank deposits, by making new loans. When a bank makes a loan, for example to someone taking out a mortgage to buy a house, it does not typically do so by giving them thousands of pounds worth of banknotes. Instead, it credits their bank account with a bank deposit of the size of the mortgage. At that moment, new money is created. For this reason, some economists have referred to bank deposits as ‘fountain pen money’, created at the stroke of bankers’ pens when they approve loans.(1)

In other words, it's created out of nothing Wink
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Re: The myths about money that British voters should reject

Post by Caker on Tue Jun 06, 2017 8:55 am

.....The same goes for credit (cards). The money is created electronically.
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Re: The myths about money that British voters should reject

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