tag:blogger.com,1999:blog-1141932539860553199.post3644620973126265975..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: The UK: A house price based economy with a house price based currency (2)Mark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-1141932539860553199.post-6368659195172698862016-10-16T15:19:31.557+01:002016-10-16T15:19:31.557+01:00MW, as regards Positive Money, I don't know wh...MW, as regards Positive Money, I don't know what their current thinking is.<br /><br />I have come to the conclusion that the problem is mainly banks mixing "land pounds" and "real pounds".<br /><br />The real productive economy needs "real pounds' as a medium of exchange and to enable people to spread consumption over their lifetimes, called 'saving', the flip side of which is businesses borrowing to invest in stocks and capital assets or people taking personal loans etc.<br /><br />When you buy a house and borrow money, the mortgage banks print "land pounds" which are just the future value of all the mortgage payments you have to make in "real pounds".<br /><br />So there would be a strict segregation into <br /><br />a) "mortgage banks" which only lend on land and buildings. If you sell a house, the bank creates an account for you denominated in "land pounds" with restrictions on how fast you can withdraw them, if house prices fall, then mortgages and deposits are written down accordingly, and <br /><br />b) 'business banks' which do all the other stuff, personal loans, overdrafts, business loans, credit cards etc. People who spend less than they earn leave their earnings with these banks as they can be withdrawn in full immediately.<br /><br />c) all lending between banks is strictly forbidden. The government will not lend banks money or allow banks to buy government bonds. The bank asset tax would only apply to mortgage banks (kind of LVT by the back door).<br /><br />Neither type of bank gets a government deposit guarantee, if people want really 'safe' savings, they can deposit their real pounds with NS&I or something.<br /><br />Which AFAICS deals with all the issues which PM are grappling with. They always make it far too complicated.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-62045329110455737302016-10-16T13:57:07.775+01:002016-10-16T13:57:07.775+01:00DBCR Reed, What do you think of this? One great he...DBCR Reed, What do you think of this? One great headline joke and then 5,000 words of not really understanding; what Wadsworth nails in about 500!<br /><br /> Welcome to Poundland, where life is bliss if you’re a foreign buyer<br />Andrew Rawnsley<br /><br />MW, Nope, I agree with Lola (very much) on this. There is a great ground swell of knowing that something is profoundly wrong, but no understanding of what to do about it. Hence the 'hit any target' that DBCR dislikes so much. I get this by the way, not from right wing reactionary cells, DBCR, but even from attending Postive Money meetings!<br /><br />Sidepoint:<br />Positive Money, Mark, seem to have read your criticism of them from a year or two back. Basically, they know what the problem is but did not have a solution. Their public solution from what I could make out in Liverpool the other month is now, a straightforward, Steve Keen, Debt Jubilee and a Corbyn, Green Bank.The only economist presented was Minsky. So progress on that side.MikeWhttps://www.blogger.com/profile/15455583313857077618noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-53977192937491030002016-10-16T13:19:58.223+01:002016-10-16T13:19:58.223+01:00L, I'm not even sure that "deep down peop...L, I'm not even sure that "deep down people know". The degree of brainwashing seems to defeat logic. The Priced Out campaigners sense that they are being exploited, but they offer no real solutions/.<br /><br />They can't even grasp the significance of the Georgism Lite we used to have and that the current state of affairs results from phasing it out. Even if LVT is a step too far, how come all the experts have forgotten how we kept rents and prices in check for most of the 20th century, they waffle on about "more supply" and that's about it.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-3049336967835758422016-10-16T12:58:25.989+01:002016-10-16T12:58:25.989+01:00DBCR how can you possibly conflate 'people kno...DBCR how can you possibly conflate 'people knowing' with fascism? From what I see on the street every day a whole load of people are fully aware that high land prices are not in isolation a good thing. The point I was making was that a lot of them lack the language to express this.Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-52895315098309816322016-10-16T10:47:47.269+01:002016-10-16T10:47:47.269+01:00The problem with this site in a nutshell: a brilli...The problem with this site in a nutshell: a brilliant economic analysis of imvestment patterns followed by fascist nonsense that "deep down the people know".<br />It is surprising that the same natural wisdom that apparently allows the British people to see the way forward lies in being nasty to fellow Europeans is not able to work out that British house prices continue to be grossly inflated.<br />Deep down the British/mainly English people know that the extreme right-wing government of interchangeable parties will always bribe them with house price inflation - while he rest of the population is furiously jealous that they missed out on the deal. How come the inflated property market scandal is permanently invisible to the great British public?They never think of anything else besides house prices They were ready enough to support state violence to suppress wage inflation (in response to Nixon torpedoing the Bretton Woods "gold window" in 1971.)DBC Reedhttps://www.blogger.com/profile/17891849727783879145noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-13553994497206014032016-10-16T09:57:50.700+01:002016-10-16T09:57:50.700+01:00The elliptical logic of this is irrefutable. Any r...The elliptical logic of this is irrefutable. Any reasonably educated high school student can get it. In fact, the uncluttered minds of those students and their lack of the life experiences of the welfare state managerialst rent seeking is precisely what leaves them ready to understand. <br /><br />So the obvious point is that TPTB are fully aware of the logic, but want no part of it for their own self interested reasons. And they have developed a whole language of deception to justify the status quo.<br /><br />The question then is how does everyone else get this changed?<br /><br />Funnily enough I think this change is starting. BREXIT is such an event. People may not have been able to articulate the argument (after an nationalised indoctrination masquerading as education is that surprising?) but somewhere deep down the people know. Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-25277685634592017042016-10-15T17:38:03.697+01:002016-10-15T17:38:03.697+01:00L, ta.
MW, it's not a manifesto, it's jus...L, ta.<br /><br />MW, it's not a manifesto, it's just stating facts, but ta anyway (why don't you sign up?)Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-30537355839841378462016-10-15T17:31:16.455+01:002016-10-15T17:31:16.455+01:00Brilliant. One page Manifesto. If only there was a...Brilliant. One page Manifesto. If only there was a political party that.....MikeWhttps://www.blogger.com/profile/15455583313857077618noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-19062110970296725612016-10-15T17:01:26.950+01:002016-10-15T17:01:26.950+01:00Yep. Another win win win winYep. Another win win win winLolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.com