Reply To: Debt free money


Hello nymanager,
I watched the vid and then the banner vid on their channel, which better describes their solution. Try as I may, I still don’t fully understand fractional reserve banking. If I am understanding correctly, while the bank can make loans beyond the amount of assets or reserves it is holding, the amount it may lend is related to a percentage of those reserves. an article by Bob Murphy.

From what I gather from the videos, they want to create a new Bureaucracy, shielded from corporate and political interests (unicorn), that will create money out of thin air and decide how to spend it into the economy.
Of course this merry band of experts will be accountable, whatever that means. When they speak of debt free, they seem to mean that the government will be free from debt, not that ordinary consumers would cease to take on future debt for present wants.

So, how does this money get “injected” into the economy? Who gets it? Why do they get it? If this committee is supposedly shielded from politicians, how does government cover their short falls on all their “necessary and proper” programs? I can think of many scenarios, none of which improve our lot by any degree. To me this all sounds like “abolish the fed and create a new one”