The document summarizes key concepts related to the global debt crisis, including:
1. Exponential growth in areas like population, money supply, and oil extraction cannot continue indefinitely in a finite world and have contributed to current economic problems.
2. Money is a social construct representing credit and debt relationships, but the modern financial system treats money and debt as assets subject to exponential growth through practices like fractional-reserve banking and securitization.
3. Inequality has increased substantially in recent decades as wealth has concentrated among a small percentage of the population while debt levels have risen exponentially, posing risks to economic and financial stability.
Eliminating the zero lower bound involves distinguishing between paper currency and electronic money (which in the 1930's, Robert Eisler called “bank money”)
MODERN MONEY: The way a sovereign currency “works”DevinDSmith
Presentation by L. Randall Wray at the conference: Central Banks, Financial Systems, and Economic Development, Banco Central de la Republica Argentina in Buenos Aires, Argentina on 10/2/2012
Four Trillion Dollar plus solutions to our Economic Problems, tried and proven.
- Sovereign Money
- Georgism
- Public Banking
- Ending Government Financial Asset Hoarding (GFAH)
Based on my new book: America is Not Broke! Available on Amazon: http://amzn.to/1Ihcc54
AMERICA IS NOT BROKE! Four Multi-Trillion Dollar Paths to A Thriving America The unsustainability of the American economy is as familiar as the newscycle. There is no money for social programs, no money to run the government, no money to cut taxes, and above all, we have to cut, cut, cut. But, what if it's not true? Instead of familiar complaints about the national debt, leading to just slicing a shrinking economic pie differently, or worse, to Austerity Economics, the reality is that we already have all the wealth we could ever need. The tried and proven proposals in America Is Not Broke would guarantee America's prosperity, fairness, democracy, and economic and ecological sustainability. Four multi-trillion dollar reforms: Sovereign Money, Georgism, Public Banking, and Ending Government Financial Asset Hoarding, plus a few other major reforms, show how we can have it all, if we only learn where to look.
Eliminating the zero lower bound involves distinguishing between paper currency and electronic money (which in the 1930's, Robert Eisler called “bank money”)
MODERN MONEY: The way a sovereign currency “works”DevinDSmith
Presentation by L. Randall Wray at the conference: Central Banks, Financial Systems, and Economic Development, Banco Central de la Republica Argentina in Buenos Aires, Argentina on 10/2/2012
Four Trillion Dollar plus solutions to our Economic Problems, tried and proven.
- Sovereign Money
- Georgism
- Public Banking
- Ending Government Financial Asset Hoarding (GFAH)
Based on my new book: America is Not Broke! Available on Amazon: http://amzn.to/1Ihcc54
AMERICA IS NOT BROKE! Four Multi-Trillion Dollar Paths to A Thriving America The unsustainability of the American economy is as familiar as the newscycle. There is no money for social programs, no money to run the government, no money to cut taxes, and above all, we have to cut, cut, cut. But, what if it's not true? Instead of familiar complaints about the national debt, leading to just slicing a shrinking economic pie differently, or worse, to Austerity Economics, the reality is that we already have all the wealth we could ever need. The tried and proven proposals in America Is Not Broke would guarantee America's prosperity, fairness, democracy, and economic and ecological sustainability. Four multi-trillion dollar reforms: Sovereign Money, Georgism, Public Banking, and Ending Government Financial Asset Hoarding, plus a few other major reforms, show how we can have it all, if we only learn where to look.
Falling into the trap of unmanageable debt is a very common
situation nowadays. It is a proven fact that more than 40% of US
people spends more than what they earn and very obviously most of
them experience the difficulty of paying debt at the right time. Get all
the info you need here
Meltdown presentation atca full master Mike HaywardEd Dodds
Mike Hayward: With the help of DK, I have redrafted my Meltdown presentation to be suitable for an International Audience and it is attached below. I have already given this talk at several UK universities with more to come. It is designed multidisciplinary audiences so it is not too technical and is richly illustrated. Please feel free to use and adapt the presentation to suit your own needs and viewpoint. My name is not mentioned in the presentation. The subject is too important to claim authorship or credit.
Summary...... The global debt mountain, peak oil, population growth, resource depletion, population growth, the pension time bomb and climate change are all interconnected.
Meltdown did not occur in October 2008, but we were within 4 hours of it happening. It has only been deferred. Remember, only 3 dozen economists correctly predicted the 2008 global financial crisis, out of a profession of 20,000 members. Not one of the World politicians and Central Bankers saw the crisis coming, but all of them claim to know the remedy. The reasons for the 2008 crash have not gone away. The US housing market is still in freefall and US and European Banks are becoming increasingly insolvent, although they won't admit it. Economic growth will be stifled by rising oil prices. The bailouts are not working. World Politicians, Bankers and Economists are trying to maintain the status quo but they are losing control. Fundamentally, the real systemic causes of the crisis are rarely discussed with transparency and have not been addressed. Fractional Reserve Banking and universal public ignorance of banking practices are the cause of all the our global problems.
The collapse will happen within the next couple of years. The Eurozone or USA will most probably be the epicentre. The interconnectivity of the financial system means we will all be affected. What happens next after the collapse is impossible to predict. History is replete with examples but not on a Global scale. Massive political unrest will prevail. There will be a rise in popularity of extreme left and right political parties.
Falling into the trap of unmanageable debt is a very common
situation nowadays. It is a proven fact that more than 40% of US
people spends more than what they earn and very obviously most of
them experience the difficulty of paying debt at the right time. Get all
the info you need here
Meltdown presentation atca full master Mike HaywardEd Dodds
Mike Hayward: With the help of DK, I have redrafted my Meltdown presentation to be suitable for an International Audience and it is attached below. I have already given this talk at several UK universities with more to come. It is designed multidisciplinary audiences so it is not too technical and is richly illustrated. Please feel free to use and adapt the presentation to suit your own needs and viewpoint. My name is not mentioned in the presentation. The subject is too important to claim authorship or credit.
Summary...... The global debt mountain, peak oil, population growth, resource depletion, population growth, the pension time bomb and climate change are all interconnected.
Meltdown did not occur in October 2008, but we were within 4 hours of it happening. It has only been deferred. Remember, only 3 dozen economists correctly predicted the 2008 global financial crisis, out of a profession of 20,000 members. Not one of the World politicians and Central Bankers saw the crisis coming, but all of them claim to know the remedy. The reasons for the 2008 crash have not gone away. The US housing market is still in freefall and US and European Banks are becoming increasingly insolvent, although they won't admit it. Economic growth will be stifled by rising oil prices. The bailouts are not working. World Politicians, Bankers and Economists are trying to maintain the status quo but they are losing control. Fundamentally, the real systemic causes of the crisis are rarely discussed with transparency and have not been addressed. Fractional Reserve Banking and universal public ignorance of banking practices are the cause of all the our global problems.
The collapse will happen within the next couple of years. The Eurozone or USA will most probably be the epicentre. The interconnectivity of the financial system means we will all be affected. What happens next after the collapse is impossible to predict. History is replete with examples but not on a Global scale. Massive political unrest will prevail. There will be a rise in popularity of extreme left and right political parties.
How to Make Awesome SlideShares: Tips & TricksSlideShare
Turbocharge your online presence with SlideShare. We provide the best tips and tricks for succeeding on SlideShare. Get ideas for what to upload, tips for designing your deck and more.
What are the financial markets and what purposes do they serveA f.pdfAnkitchhabra28
What are the financial markets and what purposes do they serve?
A financial market is a broad term describing any marketplace where buyers and sellers
participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial
markets are typically defined by having transparent pricing, basic regulations on trading, costs
and fees, and market forces determining the prices of securities that trade.
Financial markets can be found in nearly every nation in the world. Some are very small, with
only a few participants, while others - like the New York Stock Exchange (NYSE) and the forex
markets - trade trillions of dollars daily.
Investors have access to a large number of financial markets and exchanges representing a vast
array of financial products. Some of these markets have always been open to private investors;
others remained the exclusive domain of major international banks and financial professionals
until the very end of the twentieth century.
What are financial intermediaries? How do these intermediaries function in the economy?
Financial intermediaries channel funds from people who have extra money or surplus savings
(savers) to those who do not have enough money to carry out a desired activity (borrowers). A
financial intermediary is typically an institution that facilitates the channeling of funds between
lenders and borrowers indirectly. That is, savers (lenders) give funds to an intermediary
institution (such as a bank), and that institution gives those funds to spenders (borrowers). This
may be in the form of loans or mortgages. Alternatively, they may lend the money directly via
the financial markets, which is known as financial disintermediation.
Financial intermediaries help circulating money in the system. If money is staying idle (e.g.
under your bed pillow or as gold in your locker) then it is not good for the economy. Money
must keep changing hands. If you look at this from a different angle: if nobody buys skin
whitening creams then who will feed the families of those chemists who work there And the
businessman who supplies raw material to that factory? They promote the habit of savings.
Individual can use that saved money in bad times / emergency and earn profit in between. A
needy businessman will easily get loans.
When businessmen can get loans easily at a reasonable cost, they’ll start new business, expand
existing business, hire more employees, increase production of goods / services = GDP
increases. When people are making more money, they spend more money. A family goes to
restaurant, poor waiter makes money. Family hires maid, gardener, driver. Family buys new car,
mobile or bike- it breaks down, the repairman makes money. That’s how money trickles down
from rich people to poor people.
What is a federal government budget deficit? What is the national debt? How does a budget
deficit affect the economy?
The federal government budget deficit is when the Federal spending is greater than the tax
reve.
Something not right with the financial system ?Chirayu Mehta
This presentation points out the loopholes in the financial system and considers a possibility of a scam. It reveals interesting facts about the Federal Reserve Bank and its operation.
1. Following the stock market crash in October 1987 and the terror.docxjeremylockett77
1. Following the stock market crash in October 1987 and the terrorist attack in September 2001 the Federal Reserve rapidly increased the amount of money in circulation and lowered interest rates. Why did the Federal Reserve take these actions and what impact do you believe they had?
2. From early 2005 through August 2006, the Federal Reserve steadily raised short term interest rates, being concerned about potential inflationary pressures. It then held short term rates steady through August 2007, saying that it remained very watchful about possible inflationary dangers. However in September 2007 it suddenly dropped rates and took other steps to aid capital market liquidity. Recently short term rates have been maintained at extremely low rates (effectively zero percent for a while). Now there are fears of a double-dip recession and potential deflation on one hand and other fears of potential high inflation in the foreseeable future. If you were sitting on the Open Market Committee today, how would you go about deciding what policy path to take, particularly given the lag in the effect of some monetary policies on the real economy?
Note on Money and Monetary Policy
Fiscal and monetary policy represent two fundamental tools of macroeconomics. In the 1930s, John Maynard Keynes focused attention on the power of countercyclical fiscal policy, an emphasis that dominated policy circles in the United States and elsewhere at least into the 1960s. Since then, however, policymakers in many countries have relied more heavily on monetary policy to manage the business cycle.
Changes in intellectual fashion and political calculation have driven this shift. Policymakers have learned that the legislative process is often too slow to allow for fiscal fine tuning, since the budget cannot always be adjusted fast enough in the face of rapidly changing economic circumstances. They have also discovered that fiscal policy suffers a systematic bias in favor of stimulus because national legislatures generally find it politically easier to run deficits than surpluses. Monetary policy, by contrast, may be less prone to such problems. Central banks can change policy relatively quickly in response to new conditions. Moreover, central banks are often insulated from domestic political pressures and so better able to impose economic restraint.
The Money Identity
In theory, monetary policy rests on a simple identity: economic output, measured in current dollars, equals the amount of money in circulation multiplied by how often that money changes hands. Economists will recognize this as
MxV=PxQ
in which M equals the money supply, V the velocity or turnover of money, P the price level, and Q the quantity of output. Each side of the identity equals nominal GDP; and Q, by itself, represents real GDP .
Like most identities, this one clarifies important relationships but also conceals difficult questions that require answers if it is to be used effectiv ...
I need a 100-word reply to each of the following 8 post. (800 words .docxtroutmanboris
I need a 100-word reply to each of the following 8 post. (800 words total). I do conduct a plagiarism check before I make the final payment (been burned in the past) so please make it original (most of you are great and I have been totally satisfied).
These post are from a finance course:
Forum #1
If Bank A has an increase in deposits of $100M and their required reserves is 10%, then the must hold $10M in required reserves. This means that there is $90M in excess reserves that is available to loan, assuming that they want to use all of it for loans instead of making investments.
Bank A
Assets
Liabilities
Required reserves +$10M
Checkable deposits $100M
Excess reserves $90M
If Bank A loans out the entire $90M, then another bank will receive the funds as checkable deposits and also be required to hold 10% of the amount in reserves. At this point, we’ll call it Bank B, they will be required to hold $9M in required reserves and have $81M in excess reserves available to loan.
Bank B
Assets
Liabilities
Required reserves +$9M
Checkable deposits $90M
Excess reserves +$81M
Then let’s say that Bank B loans out all $81M and this amount gets deposited into Bank C. Bank C is now required to hold $8.1M in required reserves and has $72.9M in excess reserves, which it can also loan out.
Bank C
Assets
Liabilities
Required reserves +$8.1M
Checkable deposits +$81M
Excess reserves $72.9M
At this point, the money supply has grown by $271M ($100M Bank A + $90M Bank B + $81M Bank C).
The process can repeat, each time increasing the money supply and is called multiple deposit creation. The textbook provides a definition, “Part of the money supply process in which an increase in bank reserves results in rounds of bank loans and creation of checkable deposits and an increase in the money supply that is a multiple of the initial increase in reserves” (Hubbard, 2013, p. 427). The amount of the money supply has grown due to the original source that Bank A has received the $100M from. Bank A has helped to increase the money supply by loaning the $90M it had in excess reserves. Therefore, Bank A’s contribution was the $90M.
In order to discover how much money the banking system as a whole can create, the simple deposit multiplier can be used. This is “[t]he ratio of the amount of deposits created by banks to the amount of new reserves” (Hubbard, 2013, p. 427). This can calculation can be used for this scenario because the simple deposit multiplier assumes that no banks are going to hold any excess reserves beyond the required amount of 10%. The initial amount of increase in deposits was $100M and of that amount $10M was required in reserves. Therefore, the simple deposit multiplier is $100M/$10M and is equal to .
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the telegram contact of my personal vendor.
@Pi_vendor_247
#pi network #pi coins #legit #passive income
#US
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
1. The Global Debt Crisis: Money, Energy, and Limits to Growth John Bradford, Ph.D.
2.
3.
4. Overview Summary: 1. We cannot understand today's global economic crisis without understanding our ecological and energy crises. 2. A monetary and economic system based on the expectation of infinite, exponential growth cannot work in a finite world with limited resources.
7. Example: The more people there are, the more people will be born.
8. The rate or percentage increase may be constant.
9.
10.
11. The things we call money (coins, bills, checks, beads, etc.) are secondary in importance to the relationship they express.
12.
13. MONEY = A CLAIM ON 'WEALTH' OR HUMAN LABOR. It symbolizes a relation of CREDIT AND OBLIGATION (i.e. DEBT)
14. Fundamentals: What is Money? Summary: Money is credit . Credit is one end of a credit-debt relationship. Whoever has money is owed by society some quantity of labor or material wealth. Money is a claim on wealth, not wealth. Money represents the absence of wealth, not wealth itself! = IOU
15. Fundamentals: What is Money? Two Types of Money: 1. Public Money = universally redeemable IOU issued by the state. 2. Private Credit = IOUs which circulate as means of payment.
42. Principle: To grow, banks must make more loans. Banks lend more money in order to make more money. To make more money, they ended up borrowing more money to lend, or lending borrowed money .
43. LEVERAGE = DEBT: Leverage measures the degree to which assets are funded by borrowed money.
50. Note: normally a 'loan' implies that the lender gives up the right to use the item being loaned! This is not the case here. “ Bob” the Bank Depositor Borrower You “lend” the bank $100. Bob keeps $10, but lends out the rest of the $90.
51.
52. THE BANK'S POTENTIAL LEGAL OBLIGATIONS TO PAY ALWAYS EXCEED ITS ACTUAL ABILITY TO PAY AT ANY MOMENT. Bank Runs are an inherent risk of fractional reserve banking . “ Bob” the Bank Depositor Borrower Bank owes you $100, whenever you want it. Borrower owes bank $90 + 10% interest, in 1 year.
53.
54. Banks sell (trade) these IOUs; lend these IOUs; and borrow against IOUs, (i.e. use IOUs as collateral). IOU Currency =
55.
56.
57. These Banks then can either sell these loans again, or they can borrow against them in ‘repurchase agreements’
60. IOUs circulated around as money. Banks that purchased these IOUs (e.g. MBSs) borrowed against them in short-term contracts, using them as collateral to borrow cash.
61. Like a mortgage, this is ‘securitized’ lending, because putting up collateral makes it less risky or more secure (contra the ‘Commercial Paper’ market).
62.
63. Lenders demanded that they be paid back, or else be given more collateral, i.e. more securities.
64. This is basically a mass withdrawal on the debtors who had to find more securities or sell them to raise more money. The sale in turn caused the prices of these securities to decline even further!
65.
66.
67. US coins, however, are produced by the US Treasury, and do not represent debt to private banks.
68.
69. Private banks then take this new money and create 10x this amount through fractional reserve banking. This process is called the money multiplier process .
70. How new money is created by the Federal Reserve (in US) US Treasury The Fed IOUs (Bonds) Federal Reserve prints money, from nothing, and pays Treasury. Money as Debt
71. How new money is created by the Federal Reserve (in US) Treasury Federal Reserve and other Private Banks US Treasury ‘sells’ bonds. (T-Bills) In exchange for money now, Treasury gives IOU’s, to pay back this money, plus interest. IOU Cash Whatever bonds the other banks do not purchase, the Federal Reserve purchases. The Federal Reserve can exercise a power that the Treasury cannot: it can simply print the money from nothing ! But it creates this money as debt.
78. The US Treasury does not exercise the legal authority to spend new, debt-free money directly into circulation, but must instead borrow from the Federal Reserve and other private investors whatever it doesn’t collect in taxes.
79. It cannot just ‘print money’ into existence! When it does this, it is actually borrowing this money from the Federal Reserve, a private bank.
80. Implications: Growth or Die 1. The current system functions like a pyramid scheme: growth is a requirement for it to function . 2. The trickle-down effect of the pyramid monetary system has not been sufficient to avoid exacerbating income inequality: interest payments have not recycled back into the general population as earned income.
81. Linking Inequality and Debt WEALTH Ownership Relative amount of MONEY POWER 1. extend credit 2. pay debts Money is not regarded as the absence of wealth. Instead, money is itself dependent on material wealth. M oney (social credit or power) is created on the basis of the anticipated value of one's material wealth. Those with more material wealth also havemore social credit.
82. Linking Inequality and Debt Money in Circulation, Spending, or Income Expected Value of Assets Expected repayment Private Credit Amount of money is dependent upon the expected willingness of others to pay .
95. Ban fractional reserve banking- banks will serve as depository institutions, as people think they do already. The function of credit and money creation will be separated.
99. A barrel of oil, which could be extracted for a dollar, would in turn generate 25,000 hours of labor. One dollar equals 25,000 hours of labor.
100. Up until the 1950s, the United States was the “Saudi Arabia of oil” in the sense that it was world’s largest exporter. Its production, however, peaked in 1970 at 10.2 million barrels a day and subsequently declined.
101. Ten years later, domestic oil production was still in decline, despite the fact that ten times more oil wells had been drilled.
102. Currently the United States uses 25 percent of the world’s oil but possesses only 2 percent of the world’s known reserves
103.
104. Today, there are about 50 countries that are producing less oil today than in the past
105. CHEAP ENERGY IS ESSENTIAL FOR ECONOMIC GROWTH. TODAY SUPPLY IS SLOWING DOWN, WHILE DEMAND IS SPEEDING UP!
106.
107. Once the EROEI for petroleum reaches 1 (i.e. whenever it takes one barrel of oil to produce a barrel of oil), petroleum will not be market viable , regardless of how expensive it becomes and regardless of how much petroleum remains in the ground .
115. Peak by 2020, and then begin a decline by 2050 (Uppsala Hydrocarbon Depletion Study Group)
116. World oil production per capita. 1960-2003. Source: Energy Energy Information Administration (EIA). Population figures from Ecological Footprint Network.
117. Oil Production for US and Saudi Arabia, 1960-2008. Source: Energy Information Administration.
118. Growth in per capita Energy Consumption. US, OECD, China. 1990-2006. Source: World Bank.
119. Energy spending vs. Income. Source: BEA NIPA tables 2.3.5 line 11 and Table 2.1 line 1.
120. Energy use vs GDP. United States. 1960-2009. Source: World Bank.
121. World GDP vs. World Energy Use. 1971-2009. Source: World Bank.
Presidential Address Eastern Economic Journal (2011) 37, 307–312. doi:10.1057/eej.2011.8 The Profession and the Crisis Paul Krugman
In 1998 the total amount of financial borrowing exceeds the total possible. This is because in that year, the Flow of Funds accounts records that the Federal Government had a surplus of $52.6 Billion. This number is then deducted from the total, which equals $1005.5 Billion, compared to $1026.8 Billion in financial sector borrowing.
Bank runs are so called because prior to the introduction of federal insurance people would literally run to the banks to withdraw their holdings.
In all major economies, the vast majority of money is created by private banks as debt through the fractional reserve system . In the US, all new money is created by private banks, as debt.
In all major economies, the vast majority of money is created by private banks as debt through the fractional reserve system . In the US, all new money is created by private banks, as debt.
Perversely, the Federal Reserve exercises that power which the US Treasury does not: the power to create money from nothing, but only as debt.
For the Federal Reserve (aka Monetary Authority) holdings, go to: http://www.federalreserve.gov/releases/z1/current/accessible/l108.htm
For the Federal Reserve (aka Monetary Authority) holdings, go to: http://www.federalreserve.gov/releases/z1/current/accessible/l108.htm
For the Federal Reserve (aka Monetary Authority) holdings, go to: http://www.federalreserve.gov/releases/z1/current/accessible/l108.htm
For the Federal Reserve (aka Monetary Authority) holdings, go to: http://www.federalreserve.gov/releases/z1/current/accessible/l108.htm
For the Federal Reserve (aka Monetary Authority) holdings, go to: http://www.federalreserve.gov/releases/z1/current/accessible/l108.htm
Between 1960 and 1970 global petroleum production increased 118.6 percent. By contrast, between 1971 and 2009, global petroleum production increased only 52.1 percent. Worldwide discovery of oil peaked in 1964. G lobal petroleum production has remained nearly flat since 2005. In this year the Energy Information Administration (EIA) estimates that an average of 73.74 million barrels of oil was extracted daily. This declined slightly until 2008, when it increased to 73.78 million barrels of oil per day, an increase of only .054 percent over four years. The average annual percent change of production from 1960 to 1970 is 8.139 percent, whereas the average annual percent change of production from 1971 to 2009 is only 1.311 percent.
Today, there are about 50 countries that are producing less oil today than in the past. Ironically, more efficient means of extraction petroleum has only expedited its depletion, acting as giant “super straws” sucking the last easy-to-reach oil out of the ground at faster and faster rates, but without significantly increasing the amount of petroleum that would be produced from any given oil field. The last great oil discoveries of the 20th century, which effectively postponed the point of peak global production, were fields in Alaska, Siberia, and the North Sea, discovered in 1967, 1968, and 1969, respectively.
This relationship changes abruptly in the mid-1970s due to political events in the Mideast. Ignoring these political events, and tracing the relationship between quantity supplied and prices for the years 1987 to 2008, yields the time series above. Instead of rising output and falling prices, the rate of production growth declines and prices rise dramatically. In addition, the former linear slope becomes more curvilinear or exponential.
Data are taken from the World Bank’s World Development Indicators (WDI) database. Gross Domestic Product is measured at constant 2000 US dollars. Energy use is measured as kg of oil equivalent per capita. The WDI database can be located online at: http://data.worldbank.org/data-catalog.