http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0025995

you can download it for free from http://www.reverbnation.com/belmontjam
By joining the mailing list on my Bands Channel there.

Its called We are Sparticus( Burn the chains of debt)

http://www.youtube.com/watch?v=DjkjwnpVfBM

http://www.positivemoney.org.uk/how-banks-create-money/money-destroyed-when-loans-repaid/

Gary this is an excellent talk on this point it explains the double entry book keeping and shows how money in the hands of everyday conumers when used to repay bank debts effectively destroys the money from the system.
When Banks sttle their interbank accounts with cerntasl reserve bank money that is a different question.

The point on debt annihilation by a debt jubillee and thew contention that it would not be inflationary can only be understood once this simple explaination is firt internalised.

I would be interested to hear what your impressions and take away views are from watching the talk it is 30 minutes well spent in my opinion.

“Over-75s hit by falling incomes, Aviva says

People over 75 have seen their bank savings fall by 40 per cent over the last two years as the rising cost of living has forced them to dip into their nest eggs.
Pensioners are suffering due to the rising cost of living, Aviva has found Photo: ALAMY
James Hall

By James Hall, Consumer Affairs Editor

6:00AM BST 11 Jul 2012

According to a report into the finances of over-55s, the average person over the age of 75 currently has a savings pot of £13,000. This compares to savings of £22,500 just two years ago.”

http://www.telegraph.co.uk/finance/personalfinance/pensions/9389549/Over-75s-hit-by-falling-incomes-Aviva-says.html

“Why Gordon Brown sold Britain’s gold at a knock-down price

Faced with the prospect of a global collapse in the banking system, the Chancellor took the decision to bail out the banks by dumping Britain’s gold, forcing the price down and allowing the banks to buy back gold at a profit, thus meeting their borrowing obligations.

I spoke with Peter Hambro, chairman of Petroplavosk and a leading figure in the London gold market, late last year and asked him about the rumours above.

“I think that Mr Brown found himself in a terrible position,” he said.

“He was facing a problem that was a world scale problem where a number of financial institutions had become voluntarily short of gold to the extent that it was threatening the stability of the financial system and it was obvious that something had to be done.””

http://blogs.telegraph.co.uk/finance/thomaspascoe/100018367/revealed-why-gordon-brown-sold-britains-gold-at-a-knock-down-price/

Roger

I don’t agree with Mish on his union views. I happen to support unions as a democratic representation of employees. There is nothing anti-libertarian about unions that I know of.

As to monetizing debt NOT being inflationary, there is an easy quantification of inflation : if existing savings are being reduced, then you have inflation. When you monetize debt you increase the supply of money you reduce the interest rates(supply and demand) and this reduces the interest on savings. We now have negative REAL interest rates, which is the effective rate of return on savings, and this erods savings.

Another foolproof , and related, way of looking at this is to look at the price of gold. The price of gold(POG) moves inversely to the REAL rate of interest(it is the most solid empirical relationship in all economics , according to Keynes and Summers/Barskey) and the POG has increase by 500% since 2003. BTW: I actually think the price of gold is being suppressed by paper ETFs that do not actually have the physical holdings that they claim. If they can suppress LIBOR , they can manipulate anything.

More printing of money = lower price of money(supply/demand) = lower real interest rates = erosion of savings = higher gold price= inflation.

Mish is off on one of his union bashing rants again this morning happily there are quite a few dissenting views expressed.
Heres one response I made.

Brother could you spare a dime, a great anthem of the 30’s depression era is very apt today.
I have in songs and poetry and through the study of philosophy tried to express one view point as to where the roots to this current problem lie. I do not believe it is the unions or a broad group of organised labour, these organisations are for the smaller people the little people the Plebs. The big swinging dick in all of this is the Fed and the banking cartel followed by the large corporate industrial and financial fascist complex ( an extension of and innovation of IKE’s industrial military complex.)

Sixteen Tons.
Intro and background
https://www.youtube.com/watch?v=vAm1qyFN8iM
The Song, covered by me.
https://www.youtube.com/watch?v=sfCgSzyisPw
Wikipedia.
http://en.wikipedia.org/wiki/Sixteen_Tons

99%
https://www.youtube.com/watch?v=we7146EvS8s

Let Them Eat Cake.
https://www.youtube.com/watch?v=we7146EvS8s

Illuminati and Gliteratti.
https://www.youtube.com/watch?v=we7146EvS8s

Lifes Energy Force.

https://www.youtube.com/watch?v=we7146EvS8s

Baards of Wales.

https://www.youtube.com/watch?v=oNjeBOgGus4

Democracy 2011.

https://www.youtube.com/watch?v=-4F-fCiw_Ls

Citizens Not Subjects.

http://letthemconfectsweeterlies.blogspot.se/2012/07/socratic-management-learning-by.html

Masters of War, Dylan Cover.

https://www.youtube.com/watch?v=RGGWxXy5odQ

There are all sorts of useful links in the video descriptions.

Mish writes on the debt jubilee and steve keen today. He puts the same inflation point as you Gary. I think he is wrong and you have both not thought it through.

http://globaleconomicanalysis.blogspot.se/2012/07/steve-keen-goes-off-deep-end-with-debt.html?x#echocomments

I placed a comment with a link to a blog I read yesterday, I have been reading Lucian and was interested in his mention of Solon and the money lenders which lea<ad me to Plutarch and this Greek Scholars Blog.

Roger Lewis
Unusually for you Mish your rebuttal of Keens Debt Jubilee proposal is wholly rhetorical, wheres the Beef mate?
David Greiber in Debt the fist 5000 years also describes the debt jubilees of the ancients.
The ancients show that the bankers can not be trusted read about Solons Reforms and a great guide is this blog form a Greek Scholar from yesterday.

http://whenthecrisishitthefan.com/2012/01/24/the-i…

http://whenthecrisishitthefan.com/2012/01/24/the-irony-of-reading-plutarch/