Interesting talk by Prof Steve Keen at the London School of Economics

A very good talk to anyone wanting to understand the economic system as it is, not as a dogma you believe.

Around minute 15, it's interesting how he compares Greece and Spain.

He start with "what should be done in Greece?" Then he mentions, how many people would argue that what happen is Greeks fault. And then he says how you can not say that about Spain, where the same thing happened, and as a Spanish it is a really nice thing to hear, but to the point. Just before the crisis Spain was doing everything right according to the EEU (Debt to GDP, Public Debt to GDP, no deficit there was even a surplus), so then, what happen to end up like the Greeks if we were doing what we were suppose to do?

That is actually a really good point to start questioning Neoliberal Economics when they fail to explain reality.

I think this is a very interesting talk and although I am not an economist, just a normal person interested in economics, you can follow and understand what he is saying.

Benjamin Franklin and the Colonial Scrip

In this very interesting article about Fractional Reserve Banking and the similarities of it with a Ponzi Scheme there some very interesting stories and quotes. 

I specially liked this one of Benjamin Franklin:

When the directors of the Bank of England asked what was responsible for the booming economy of the young colonies, Franklin explained that the colonial governments issued their own money, which they both lent and spent into the economy:

“In the Colonies, we issue our own paper money. It is called ‘Colonial Scrip.’ We issue it in proper proportion to make the goods pass easily from the producers to the consumers. In this manner, creating ourselves our own paper money, we control its purchasing power and we have no interest to pay to no one. You see, a legitimate government can both spend and lend money into circulation, while banks can only lend significant amounts of their promissory bank notes, for they can neither give away nor spend but a tiny fraction of the money the people need. Thus, when your bankers here in England place money in circulation, there is always a debt principal to be returned and usury to be paid. The result is that you have always too little credit in circulation to give the workers full employment. You do not have too many workers, you have too little money in circulation, and that which circulates, all bears the endless burden of unpayable debt and usury.”

I recommend everyone to read the full article. It's time for people to understand the current monetary system is not what we have been told or lead to believe. It's time for people to realised there are alternatives that would work much better for society, and these alternatives are actually not a new thing, but things that have been done and that have worked successfully in the past.

If you are interested in learning about money creation you can take a look at Positive Money.