How We Make Money By Richard Murphy

11th January 2024

It may be more complicated than you think but Richard Murphy explains that in reality it is simple. Would that more politicians understood how it works.

As I often explain about my writing of this blog, much of my motivation for doing so is to work out what I think about an issue. This is why I will, for example, put half-formed ideas on here to test reaction to them, and why I am, on many occasions, willing to change my mind about things that I have said because others have presented me with better ideas.

When I first raised the subject of Sir Howard Davies not understanding that banks are not intermediaries, but do, instead, create money out of thin air to loan to their customers, I did not expect the number of blog posts that have followed, or the several hundred comments that have appeared on them. Sometimes issues get a life of their own, and this one certainly has.

What I think is worthwhile now is to summarise what has been established, and what now needs to be thought about some more. This is largely for my benefit, but if others find it useful that makes it doubly worthwhile.

Readthe full blog HERE

For explanations of the banking system and economic matters and much more a great blog to follow is written by Richard Murphy. Funding the Future is written and managed by Richard Murphy on behalf of Tax Research LLP.

Regular updates daily on many topics are very interesting and informative. See https://www.taxresearch.org.uk/

Recently the question of Where Money comes From In The first Place has had very interesting comments.

Bill Kruse who has collected many useful references post it to the blog. If you think you know where money comes from then read a few of the explanations at https://www.economania.co.uk/various-authors/where-money-comes-from.htm There is a lot to take in so bookmark to read more when you have time. Thanks to Bill Kruse for sharing.

The blog that kicked a huge interest can be found at
https://www.taxresearch.org.uk/Blog/2024/01/06/central-bankers-on-the-ability-of-banks-to-create-money-out-of-thin-air/

As has been pointed out some off our politicians do not seem to understand how the system works to create money in the banking system leading to them uttering entirely inaccurate statements and worryingly may lead to part of the state we are in.

Richard Murphy has devoted much time to his blog and he appears regularly on TV, Radio and other media. Well worth signing up for to his blog to keep up to date with the economic and politics of finance.