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Central Banking for All: A Public Option for Bank Accounts (2018) [pdf]

greatdemocracyinitiative.org

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Re: Central Banking for All: A Public Option for Bank Accounts (2018) [pdf]

#61

Post by _gx90 »

mempko wrote: post #57
_gx90 wrote: post #25

This is an obvious trojan horse for totalitarian central planning. Easier to enact negative interest rate policy when everyone is holding an account at the Fed and no one can take out their money since cash is either banned or made severely inaccessible (like in some EU countries). In my opinion private banks are perfectly fine, the problem isn't the idea of independent banks, the problem is government and central ba…

You honestly think there isn't already central planning? If you believe private banks are perfectly fine, what exactly happened in 2008?

I should qualify that I think the idea of private banks is perfectly fine. I agree that what we have right now is a quasi-governmental centrally planned banking system and that should definitely be dealt with as it was government (through guaranteed mortgages) that largely encouraged the conditions that lead to 2008.

Re: Central Banking for All: A Public Option for Bank Accounts (2018) [pdf]

#62

Post by thoughtstheseus »

freeone3000 wrote: post #51
hammock wrote: post #24

So "Great Democracy" is how they are going to wrap this, huh. "This" being helicopter money AKA digital dollars AKA direct fiscal injection into private Americans' bank accounts. Been a long time coming. Who is The Great Democracy Initiative, and where does their funding come from?

This appears to be a banking account and a payment processing system, and not actually giving any money to individuals above the standard index interest rate (which is already given out, but retail banks take their cut).

This system would make the execution of helicopter money policies trivial. Good or bad?

Re: Central Banking for All: A Public Option for Bank Accounts (2018) [pdf]

#64

Post by carlosf »

hogFeast wrote: post #37
hammock wrote: post #26

Earlier quoted context omitted.

It's really hard to convince ZH detractors. A naive perusal of the site is definitely packed with of, at its most charitable interpretation, a bunch of gobbledegook, and at its least charitable, pure propaganda. But between the lines there is a lot of truth, and importantly, many facts and analysis that you will never find in any mainstream sources, neither NYT nor Fox News nor the Atlantic nor whatever else. It take…

Yep: I worked in finance for years, have degrees in economics...and their coverage is useful. To name one example of many, they were saying that JP Morgan was rigging commodities markets for years. I know people not in finance who heard that ZH story (years ago now, when ZH was in their pomp): lololol, tinfoil hat...that JPM were rigging commodities markets was known in finance for literally decades, it was common kn…

That's how I think too.

There's a problem in wireless communications called multipath. When a signal is transmitted over the air, the receiver will often not receive the original signal. Instead, it will receive a lot of reflected, refracted and distorted versions of it.

So the question is: what's the best way we can combine those signals to recreate the original?

Not going into the specifics, but it turns out that to maximize information it's often necessary to listen to trash signals (one that has a lot of noise) because those might have information that good signals do not have (as many times they will be redundant).

Re: Central Banking for All: A Public Option for Bank Accounts (2018) [pdf]

#65

Post by thoughtstheseus »

RobertoG wrote: post #45
jcbrand wrote: post #28

Earlier quoted context omitted.

37% of USA debt is held by foreigners, while it's just about 9% in Japan.

There is not reason why the Federal Reserve can't do the same that the Bank of Japan if they choose so.

Sure but the Fed should not be buying REITS and equity markets. I don’t think people realize how damaging it would be to the country long-term. Financial Engineering can smooth economic cycles but real forces determine LT growth rates. The Fed knows this and has been asking for fiscal support.

Re: Central Banking for All: A Public Option for Bank Accounts (2018) [pdf]

#66

Post by toomuchtodo »

Animats wrote: post #63

Imagine trying to reach customer service. The US had "postal banking" from 1911 to 1967, but it was all paper based.

Can’t be worse than dealing with Chase, BoA, or Wells if you’re not a private banking client (ie high net worth).

It’s a bit tiring to hear the government can’t do, when those social security deposits roll out without hiccup each month, and Medicare has exceptionally high satisfaction rates from the 65 and older crowd.

Re: Central Banking for All: A Public Option for Bank Accounts (2018) [pdf]

#67

Post by mikeyouse »

toomuchtodo wrote: post #66
Animats wrote: post #63

Imagine trying to reach customer service. The US had "postal banking" from 1911 to 1967, but it was all paper based.

Can’t be worse than dealing with Chase, BoA, or Wells if you’re not a private banking client (ie high net worth). It’s a bit tiring to hear the government can’t do, when those social security deposits roll out without hiccup each month, and Medicare has exceptionally high satisfaction rates from the 65 and older crowd.

Exactly this - and assuming congress wants it to succeed (yikes as an assumption, but let's be charitable) - people can talk to their congressperson to increase funding if they have deficiencies. Imagine trying to get Chase to improve their customer service as a low-dollar account holder.

Re: Central Banking for All: A Public Option for Bank Accounts (2018) [pdf]

#68

Post by [deleted] »

closeparen wrote: post #31
RobertoG wrote: post #4

This is an interesting proposal. Private banks have two very important functions in society: they provide the infrastructure for the payment system and they control credit. This proposal would disentangle those functions making, I think, a more robust financial infrastructure. The payment system is, by its characteristics, a natural monopoly, and it's so important that makes sense that it become public. If that was t…

Customers expect to have use the of the money they deposit with you, so once you take deposits you are the payment system. “Robust banking system” is inherently tied to reserve ratios, or having the deposits on hand to cover the loans you’re writing. A bank that only writes loans and doesn’t have deposits is the opposite of robust. If any bank gets to do this it would be the central bank. Payment facilitation is less…

[deleted]

Re: Central Banking for All: A Public Option for Bank Accounts (2018) [pdf]

#69

Post by kderbyma »

I have been thinking about something similar except that my idea is a little more extreme. I believe that citizens should be able to deal with the central banks directly or not at all. by effectively making every single person their own central bank, and thus they can choose to avoid country banks entirely.
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