Re: 'Stability' Of Equilibrium w/Zero-Cost Money

["Harry Veeder" <eo200@xxxxxxxxxxxxxxxxxxx>]

On second thought, I was wrong but that doesn't mean I agree with your
synopsis.
More money is routinely created then debt, through the mechanism
of interest....

Money = Debt + Interest on Debt.

(Interest is the cost of issuing debt).

If the CB is the people's bank and government borrows from
the people's bank then government interest payments on
government debt should be distributed among the people,
and not into the CB!

What do you think?

Harry Veeder


----------
>From: "Gunnar Tomasson" <tomasson@xxxxxxxx>
>To: "Harry Veeder" <eo200@xxxxxxxxxxxxxxxxxxx>
>Cc: "POST KEYNESIAN THOUGHT" <pkt@xxxxxxxxxxxxxxxx>
>Subject: Re: Re.: 'Stability' Of Equilibrium w/Zero-Cost Money
>Date: Thu, Sep 21, 2000, 3:51 pm
>

>Harry:
>
>I don't get your point.
>
>The Creditary View of Money is summarized in the Money = Debt equation.
>
>One gets into debt by signing Zero-Cost IOU, the counterpart to which is
>Zero-Cost Money (or Bank IOU).
>
>Gunnar
>
>
>----- Original Message -----
>From: "Harry Veeder" <eo200@xxxxxxxxxxxxxxxxxxx>
>To: <pkt@xxxxxxxxxxxxxxxx>
>Sent: Thursday, September 21, 2000 9:57 AM
>Subject: Re: Re.: 'Stability' Of Equilibrium w/Zero-Cost Money
>
>
>> Gunnar Tomasson wrote:
>>
>> <snip>
>> >8. Now, money impacts real-world economic developments - once it is
>> >recognized that modern money is created with the stroke of a computer
>key,
>> >the proposition that "Walras's theory and all others along those lines -
>> >including Samuelson's - are little better than nonsense" does not hold
>water
>> >- THEY ARE NONSENSE!
>> <snip>
>>
>> This would be accurate if modern money weren't always created with a
>> corresponding amount of debt.
>>
>> Harry Veeder
>>
>>
>>
>>
>>
>>
>>
>>
>
>