| Subject: | Re: [socialcredit] Money supply etc. | | Date: | Friday, January 12, 2007 04:34:21 (+0000) | | From: | John G Rawson <johngrawson @.......com>
|
My/our definition of M1 is "Notes and coins in circulation(not those in bank
vaults) and demand deposits at the financial institutions." Do you have a
problem with that? What you have quoted is, I believe, M3. In any case, that was
the basis of my quote, taken from our 1956 Royal Comission Report. The fact that
the proportion of our money created by the "private" banking system has increased
greatly over the period is indisputable, and that was the point I was making.
Demand deposits in NZ seldom pay interest. Some "Savings bank" type
organisations (of which we have very few left) pay very low rates.
REgards. John R.
From: John Hermann <hermann@picknowl.com.au>
Reply-To:
socialcredit@elistas.com
To: socialcredit@elistas.com
Subject: Re:
[socialcredit] Money supply etc.
Date: Fri, 12 Jan 2007 10:25:51 +1030
>At
07:32 PM 11/01/2007 +0000, John Rawson wrote:
>
>>Quickly available data for NZ
shows that the proportions of bank
>>deposits to total M1 in NZ in the past
were: 1935 - 56%, 1945 -
>>65%, 1955 - 75%. The present is about 97%.
>
>
>John,
this statement makes no sense. Bank deposits as a whole must
>always exceed M1.
That's because within a fractional reserve
>financial system most bank deposits
are interest-bearing (e.g. term
>deposits, savings deposits), which are not part
of the M1 aggregate.
>
>-- John
Hermann
>
>
>
>
>
>
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