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Where does all the money come from

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Comments

  • Registered Users, Registered Users 2 Posts: 14,125 ✭✭✭✭Danzy


    There was long periods of strong global growth, strong productivity growth.


    Low growth looks like being the norm for quite a few years to come in the Western world.



  • Registered Users, Registered Users 2 Posts: 5,904 ✭✭✭daheff


    Governments do not 'create' money by borrowing on the bond market. They access it. Same as you or I do when we borrow money.


    they use taxation to take money from us to repay bond borrowings so that they will be able to borrow again in the future.


    Money is only created by governments when they print it (via central banks/fed/ecb), but Ireland cannot do that as it gave this facility to the ECB.



  • Registered Users, Registered Users 2 Posts: 29,903 ✭✭✭✭Wanderer78


    or stagnation...... which means, we re in trouble regarding debt, in particular private debt



  • Registered Users, Registered Users 2 Posts: 29,903 ✭✭✭✭Wanderer78


    this is the neoclassical 'model' of money creation, and it is completely wrong. once again, the two main methods of money creation are governments via bond markets, and banks via credit creation, hence the use of the term, 'governments are not like a house hold', as they have the ability to create money, and households do not, i.e. its why the whole idea of balancing budgets is pure bullsh1t, and in fact is dangerous. each euro zone central bank do in fact create a small proportion of the money supply, in the form of hard currencies, coins and notes, this includes the irish central bank, so also wrong here. yes, by joining the euro, we handed the ecb the majority of our money creation abilities over, but not all our abilities, as discussed. we could also create other methods of our own money creation via our own network of public banks, as some euro zones counties already have, but since theres very little understanding of this, theres virtually no drive to do so. one again, globally, the largest supplier of our money supply comes from private sector financial institutions, i.e. banks, in the form of credit, once again, this can be clearly seen in the graph included. and just for clarification, once again you re wrong, banks actually create the majority of our money supply, and not central banks, but normal job soap commercial banks, when loans are taken out, hence the 08 crash. oh and for good measure, heres the research from central banks supporting all of this




  • Registered Users, Registered Users 2 Posts: 8,184 ✭✭✭riclad


    in the 60,s ,70,s and 80s 1000,s of house,s were built every year ,a mix of private housing and social housing. the government knows it has to have a long term housing plan, build x amount of units for year ,for at least ten years .our population is growing .our economy will have severe problems unless our housing crisis is solved .We a problem with rents rising, when a nurse or a garda cant afford to buy a 2 bed house that means prices are too high. Also young people at some point want to settle down, marry and maybe have children. this is not possible to do if you can only afford to rent a 1bed apartment .

    japan has a major problem, the population is falling because of very low birth rates, there are 1000,s of empty house, s in rural area.s .it makes sense to borrow money if its for a major project like new housing in area,s of high demand .



  • Registered Users, Registered Users 2 Posts: 13,724 ✭✭✭✭Geuze


    6.90 for Guinness, in the suburbs of Dublin, really?



  • Registered Users, Registered Users 2 Posts: 13,724 ✭✭✭✭Geuze


    The welfare state was not as big then, healthcare and pension costs were not as high.

    These days, ageing causes healthcare + pensions + social care costs to rise every year.

    Plus, recent Govts have a policy of depending on the market to build houses, which are then rented via HAP, rather than building and owning the social houses itself.



  • Registered Users, Registered Users 2 Posts: 29,903 ✭✭✭✭Wanderer78


    we had a much much smaller economy then, far less complex, we werent as integrated into the world economy, we werent as exposed to highly extractive elements such as the fire sectors. i think our overall health care needs are also far more complex, therefore costly, now, id say theres layers and layers of complexity occurring



  • Registered Users, Registered Users 2 Posts: 20,110 ✭✭✭✭cnocbui


    I do laugh:

    "A GRAND Chamber comprising 15 judges of the European Court of Justice (ECJ) will hear a number of appeals brought by Cypriot bank depositors, who lost their money in the March 2013 ‘haircut’ against the European Commission and the European Central Bank on February 2, 2016, the Sunday Mail has learned."

    In 2015 I got sick of watching the value of my small balance in an AIB account evaporate, and took a punt and bought bitcoin instead. Lot's of laughs to be had since then.



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  • Registered Users, Registered Users 2 Posts: 29,903 ✭✭✭✭Wanderer78


    its an unstable form of investment, bitcoin does not meet the criteria of money, its just a high risk investment, some are becoming millionaires and billionaires from it, while others are losing their bollcoks, particularly during pump and dump events



  • Registered Users, Registered Users 2 Posts: 18,781 ✭✭✭✭kippy


    Good for you.

    But that even more of a reason why bitcoin specificilly can never be a widely used currency.



  • Posts: 3,801 ✭✭✭ [Deleted User]


    Yeh but that wasn’t true for Ireland at the time. Still we managed to build houses. I think local authorities could take out their own loans at the time.

    we could replace the HAP scheme and use that money to pay back specific loans.



  • Registered Users, Registered Users 2 Posts: 29,903 ✭✭✭✭Wanderer78


    we could also borrow from ourselves if we created the financial institutions to do so, and use them to partially self fund building



  • Registered Users, Registered Users 2 Posts: 3,699 ✭✭✭Montage of Feck


    Obviously the solution to both nations troubles is for to facilitate Irish migration to Japan.

    🙈🙉🙊



  • Registered Users, Registered Users 2 Posts: 29,903 ✭✭✭✭Wanderer78


    ...and then we could have our very own élite group of ninjas, when they eventually come back, i like this plan!



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  • Registered Users, Registered Users 2 Posts: 5,806 ✭✭✭The J Stands for Jay


    Everyone will get cancer, assuming they live long enough.



  • Registered Users, Registered Users 2 Posts: 13,503 ✭✭✭✭Mad_maxx


    Houses back then were like caves relative to today ,no central heating, nevermind insulation of any kind.

    It's a bogus point saying the government built X number of houses back when .



  • Registered Users, Registered Users 2 Posts: 29,903 ✭✭✭✭Wanderer78


    yes and no, its ultimately the fact we have allowed major sectors, in particular the fire sectors(finance, insurance and real estate), to dictate and dominate our economies, whereby their main objectives have been, and still are, to maximize utility, i.e. maximize their profits, why our property markets are wrecked. in turn we have also been continually electing governments whos main aims have been to maintain this status quo.

    the only way out of this is to make our governments take back some element of control of this process, the current housing proposal by the looks of it, is a step in the right direction, as a large proportion of the finances required, will be coming from public finances, and not from the preferred fire sector approach of credit from private sector financial institutions, i.e. banks, but i still expect the fire sectors to get heavily involved, for their pounds of flesh, and they probably will.



  • Registered Users, Registered Users 2 Posts: 3,986 ✭✭✭Buddy Bubs




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