No money approach? – Finance

For several years, contrary to all the monetary discipline that has been practiced for half a century, the ECB finances European countries directly until they hold 30% of their outstanding public debt. The ECB saved the public economy, but also the private economy. But there is nothing left behind or after the monetary creation of central banks to support the all-out rush of capitalism. And the problem with the latter is the lack of lethal limitations.

Nothing is left because there is no higher institution behind central banks that shape the state of monetary confidence. Contrary to Gnosticism, which claimed that the imperfection of the world could only be the work of a dissident demiurge who had temporarily usurped the authority of the true God, and that God was God, there is no real central bank behind central banks. There is nothing left, which explains the confusion displayed by European governments during the sovereign debt crisis of 2009-2011 before the ECB decided to use its balance sheet to refinance captive states.

Jacques de Larosiere, former Managing Director of the IMF and Governor of the Banque de France, points to the profound dangers of modern monetary policy in various recent contributions. Without daring to address the issue of monetary explosion, he borders on the subject, reminding us that excessive money creation can only lead to inflationary growth that disrupts societal balance.

However, contrary to this opinion, I believe that the financial system should restore the equilibrium point not by further expansion of financing by central banks, but by a desire to use bank deposits and insurance reserves in a targeted manner. This reflects the creation of money in the direction of financing the states. This evolution will happen in this way, not by expropriating the private shareholders of these financial institutions distribution of their assetsoriginates from depositors’ deposits stemming from the monetary creation of central banks, in the direction of financing the public debt. This will, of course, result in a decrease in the profitability of these institutions, as they will be exposed to the premium that the States want to give them.

The culmination of monetary creation by central banks will then be its own negation, i.e. increased control over the commercial banks and insurance companies that house the money created by the central banks. In other words, since they cannot be financed ad infinitum by central banks, States will have to finance themselves from the financial institutions they control.

Despite its existence, the circulation of money will certainly change. However, in reality, it is impossible that such a level of public debt, moreover, when it is fragmented according to the member states of the euro zone, does not lead to sharp patronage of the financial sector.

This monetary control will be complemented by the issuance of digital euros issued by the ECB, which will allow the balance sheet of the ECB to contrast the public debts financed by this institution and the domestic savings of citizens. States will also capture a portion of cash flows to finance the energy transition and environmental restoration.

Should we be surprised? It’s not worth it. Money is within the jurisdiction of states. This reflects the payment of taxes, the two royal rights (ie the right to coin money and the right to collect taxes) being the obverse and reverse of the same reality, reflected in the phrase Monetandi jus principum ossibus inhæret: the right to coin money inseparable from sovereignty. .

Nothing is left because there is no higher institution behind central banks that shape the state of monetary confidence. Unlike Gnosticism, which claims that the imperfection of the world can only be the work of a dissident demiurge who has temporarily usurped the authority of the true God, and that God is God, there is no real central bank behind central banks. There is nothing left, which explains the confusion the ECB displayed during the sovereign debt crisis of 2009-2011 before deciding to use its balance sheet to refinance captive states. Excessive restrictions on the Euro Treaties. In various recent contributions, Jacques de Larosière, former managing director of the IMF and governor of the Banque de France, draws attention to the profound dangers of modern monetary policy. Without daring to address the question of money explosion, he draws the line by reminding us that excessive money creation can only lead to increased inflation, which disrupts societal equilibrium, but in contrast to this view, I believe that the financial system has reached its equilibrium point. find a desire to reflect this monetary creation in itself, consisting of bank deposits and insurance reserves directed to the financing of states, rather than in the subsequent expansion of financing by central banks. . This evolution will not occur through the expropriation of the private shareholders of these financial institutions, but rather through the transfer to these financial institutions of the assets derived from depositors’ deposits, which originated from the monetary creation of central banks. public debt financing. This, of course, will result in a decrease in the profitability of these institutions, because they will be exposed to the premium that the States want to give them. strengthening control over commercial banks and insurance companies that house money created by central banks. In other words, since they cannot be financed ad infinitum by central banks, States will have to finance themselves from the financial institutions they control. Despite its existence, the circulation of money will certainly change. However, in reality, it is impossible that such a level of public debt, moreover, when it is fragmented according to the member states of the euro zone, does not lead to sharp patronage of the financial sector. This monetary control will be complemented by the issuance of digital euros issued by the ECB, which will allow the balance sheet of the ECB to contrast the public debts financed by this institution and the domestic savings of citizens. States will also capture a portion of cash flows to finance the energy transition and environmental restoration. Should we be surprised? It’s not worth it. Money is within the jurisdiction of states. This reflects the payment of taxes, the two royal rights (ie the right to coin money and the right to collect taxes) being the obverse and reverse of the same reality, reflected in the phrase Monetandi jus principum ossibus inhæret: the right to coin money inseparable from sovereignty. .

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