That Government promise. Everyone can rest assured that if you go to the Government and present a piece of paper that has lost over 93% of its value since 1971, they will give you a fresh piece of paper that has been degraded to exactly the same degree.
I've taken undergraduate economics courses and even Money And Banking courses, and was always amazed that they never defined what it was they were talking about when they talked about money.
Brilliant clarity to the issue of money and government spending, but tragic that this truth does not gain sufficient traction in political circles. As with Brexit, there’s only so much truth that the populace is allowed.
Richard, fascinating explanation, thanks. I’d like to know your analysis of HMT rules over ‘Capital’ and ‘Resource’ expenditure and whether this is a justifiable division.
Not the UK they came off the gold standard in 1931. In 1971 the US came off the gold standard and it was the end of the Bretton woods agreement So one can argue the UK was technically on the gold standard, via the close following of the US dollar. However, in reality, it was not on it. What this meant was the UK was not constrained by the internal/external factors like the US was, with regards to how much gold it had. The UK could create any amount they need and saw fit to. Of course, they were careful not to go overboard and upset the Americans and the market, but you get my point. After 1971 the US pulled a fast one, it went off the gold standard and used oil to back the US $. The age of the petrodollar was born. No one says the petro £ sterling or the petro Euro. Why? Because we know both Sterling and the Euro are not backed by Oil. It is in this light, we can't say all currencies pegged to the US dollar before 1971 were on the gold standard or any other commodity. www.parliament.uk/business/publications/research/olympic-britain/the-economy/small-change michaelkitson.files.wordpress.com/2013/02/kitson-gold-standard-june-2012.pdf. www.investopedia.com/terms/p/petrodollars.asp As for Richard's views on money creation and taxi agree with him.
Fascinating way at looking at money and government expenditure. Thank you Richard.
That Government promise.
Everyone can rest assured that if you go to the Government and present a piece of paper that has lost over 93% of its value since 1971, they will give you a fresh piece of paper that has been degraded to exactly the same degree.
Bang on the Money, Richard!
Most videos on this subject are waaay too long - this is concise and tight. Thank you.
I've taken undergraduate economics courses and even Money And Banking courses, and was always amazed that they never defined what it was they were talking about when they talked about money.
Very useful summary. I shall be sharing this a lot.
Brilliant clarity to the issue of money and government spending, but tragic that this truth does not gain sufficient traction in political circles. As with Brexit, there’s only so much truth that the populace is allowed.
What about banks creating money when they extend credit?
@@finchbevdale2069 Sorry but I can't recall this thread. I'm sure we are on the same line anyway reading your response.
Richard, fascinating explanation, thanks. I’d like to know your analysis of HMT rules over ‘Capital’ and ‘Resource’ expenditure and whether this is a justifiable division.
Not the UK they came off the gold standard in 1931. In 1971 the US came off the gold standard and it was the end of the Bretton woods agreement So one can argue the UK was technically on the gold standard, via the close following of the US dollar.
However, in reality, it was not on it. What this meant was the UK was not constrained by the internal/external factors like the US was, with regards to how much gold it had. The UK could create any amount they need and saw fit to. Of course, they were careful not to go overboard and upset the Americans and the market, but you get my point.
After 1971 the US pulled a fast one, it went off the gold standard and used oil to back the US $. The age of the petrodollar was born. No one says the petro £ sterling or the petro Euro. Why? Because we know both Sterling and the Euro are not backed by Oil. It is in this light, we can't say all currencies pegged to the US dollar before 1971 were on the gold standard or any other commodity.
www.parliament.uk/business/publications/research/olympic-britain/the-economy/small-change
michaelkitson.files.wordpress.com/2013/02/kitson-gold-standard-june-2012.pdf.
www.investopedia.com/terms/p/petrodollars.asp
As for Richard's views on money creation and taxi agree with him.
😮