@@Infose from your source, which talks of M4 money in the...

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    @@Infose from your source, which talks of M4 money in the "system":

    "The central bank also influences demand for loans when setting the central bank base rate. A lower interest rate encourages increased bank borrowing, as a consequence of reducing borrowers cost of bringing forward future consumption. The central bank also influences demand for bank borrowing by influencing wider economic conditions, as a consequence of the central bank’s monetary policy stance."

    I ask again, with all due respect; why would commercial banks borrow money from central banks if they create "book money" as you, and the text books suggest? And again, that you scoff at derivatives as being relevant, why do they protect these loan books with derivatives and how?

    What do your text books have to say about this. I am well aware of Glass-Stegall by the way, that Bill "I did not have sexual relations with that woman" repealed. So the separation of commercial and investment banking is a moot point don't you think? At least in the modern era or is that after the text books were written?

    I should note that the original point of this thread is automation and debt growth which I have not even gotten to yet. Debt must first be understood for this discussion to have merit. I am trying to establish definitions so we do not argue cross purposes and I am too aware of the misconceptions in education, economics and society at large. The confusion is not your fault and is wide spread. Hence my original explanation of the ex-Board member and derivative designer (risk expert essentially) and debt desk manager. I was not big noting myself that was not the point nor was it about "you have to listen to me as I knew a bloke blah blah blah". It was careful qualification of source along with the broad brief I provided hoping to clarify a few things or at least spark meaningful discussion.

    Best regards,
    CW
 
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