Lol, the bank of england is the grandaddy of them all and doesn't want people to understand how money works any more than any other big bank does.
βIt is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.β
you can read up on social credit (the western version, not chinese) if you want an alternate perspective
EDIT: On reading it, this is actually a reasonable description of how it works. But the idea that it's not managed by anyone is silly: the banks manage it by scrounging as much debt as they can, productive or not, and charging as much interest as they can on it (and getting bailouts when that inevitably goes sideways, which transfers the issue to the public purse). That's the problem: the money needs to be created to match the productive economy and be placed in the hands of everyone, interest free.
There's a crucial difference: in the economy we have, each party manages its own money, no party manages the overall money supply. That's why the overall money supply (M2 etc) has to be estimated: there isn't a managing authority that could report correct numbers.
To my mind that's good, it allows each of us the right to estimate future value, and the money supply is effectively a sum of our estimates.
I think you write "the money needs" because you want that to be the case, Just another sentence where "x needs" (third person) means "I want" (first person). Unless you can describe the need?
βIt is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.β
you can read up on social credit (the western version, not chinese) if you want an alternate perspective
EDIT: On reading it, this is actually a reasonable description of how it works. But the idea that it's not managed by anyone is silly: the banks manage it by scrounging as much debt as they can, productive or not, and charging as much interest as they can on it (and getting bailouts when that inevitably goes sideways, which transfers the issue to the public purse). That's the problem: the money needs to be created to match the productive economy and be placed in the hands of everyone, interest free.