tag:blogger.com,1999:blog-2197051945822486684.post3277738639207147824..comments2024-03-28T09:26:25.931+11:00Comments on Thinking Out Aloud: The Illusion of free bankingLorenzohttp://www.blogger.com/profile/00305933404442191098noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2197051945822486684.post-71441588568690475792018-02-01T10:55:41.739+11:002018-02-01T10:55:41.739+11:00Just a typo, though, as you say, an amusing one.Just a typo, though, as you say, an amusing one.Lorenzohttps://www.blogger.com/profile/00305933404442191098noreply@blogger.comtag:blogger.com,1999:blog-2197051945822486684.post-73341349443010324172018-01-31T22:29:24.706+11:002018-01-31T22:29:24.706+11:00"Central banks are uniquitous" - ubiqu..."Central banks are uniquitous" - ubiquitous, with flavours of unique and iniquitous. A nice typo, given the context. Or a nice neologism?Colin Huttonhttps://www.blogger.com/profile/13827213421803154126noreply@blogger.comtag:blogger.com,1999:blog-2197051945822486684.post-80429005557324502872018-01-31T11:58:51.589+11:002018-01-31T11:58:51.589+11:00But central banks provide vehicles for doing same....But central banks provide vehicles for doing same. It is why they were originally developed. Lorenzohttps://www.blogger.com/profile/00305933404442191098noreply@blogger.comtag:blogger.com,1999:blog-2197051945822486684.post-76185538603600210542018-01-31T00:35:54.881+11:002018-01-31T00:35:54.881+11:00Well, good post, but I think you may slight money-...Well, good post, but I think you may slight money-financed fiscal programs here, in a certain way. Actually, something is off about this post. <br /><br />You posit the Bank of England and other central banks are at hand to "debt-finance" wars and navies. <br /><br />I guess so, but the US has usually financed wars by fiscal borrowing, that is borrowing by the federal government. The Fed might ease, or during WWII the Fed kept interest rates flat or pegged. I am not sure how the Fed "debt-financed" WWII for the US. <br /><br />Now, in Japan during the Great Depression, the finance minister Takahashi Korekiyo went to money-financed fiscal programs, or helicopter drops. Japan side-stepped the bulk of the Great Depression while other Western nations floundered. And Japan had been an exporting nation!<br /><br />This is a key lesson of the Great Depression that is never taught. <br /><br />Sadly, the national government of Japan used Takahashi's helicopter drops to build a war machine. Takahashi actually opposed the militarists, and was assassinated, I guess Takahashi did not "debt finance" a war machine as much as print money to build a war machine (which he detested). <br /><br />So in conclusion, I am puzzled. When does a central bank "debt finance" a war machine? It seems to me the national government borrows money and conducts wars. This describes Afghanistan and Iraq, for example. <br /><br />Benjamin Cole <br /><br /><br /><br /><br />Anonymousnoreply@blogger.com