This resulted in excessive money issuance.
FORBES: Illiterate "Fiscal Cliff" Negotiating Signals European-Style Austerity In The U.S.
Because it is impossible to manufacture and traditionally difficult to extract and process from the ground, gold served as a stable peg for coinage and paper money issuance--but no nation operates on a "gold standard" today, as most abandoned it during the 20th century after major powers suspended it periodically during times of costly military adventures during the 19th century.
Growing economies require more of the measure that is money, and issuance of same is not itself inflationary.
And the issuance of covered money substitutes is more popularly known as quantitative easing or QE .
The solution: Give businesses a deduction for dividends paid (net of money raised through new stock issuance).
Fast forward to today and we see that the issuance of paper money has become a vital source of government power.
Private banks, via the issuance of uncovered money substitutes, which springs from the ability of those banks to pyramid deposits on top of base money when making loans or purchasing assets.
It was actually more of a backstop, an authority for the Treasury Department to step in if Fannie Mae and Freddie Mac failed to do what they're supposed to do, which is to borrow a whole bunch of money in order to back the issuance of mortgages around the country.
The paper argues that we should eliminate legal restrictions on private currency issuance to allow private firms to create money backed either by Federal Reserve notes or commodities like gold, a position I completely agree with.
FORBES: Monetary Easing Has (Almost) Nothing To Do With Deceiving Consumers
While retail and institutional investors continue to put money to work in the space in early February, CLO issuance was slowing as narrower loan spreads nicked equity arbitrage.
Policymakers eventually got to the right destination by offering greater security to depositors in banks and money-market funds, for instance, and guaranteeing banks' debt issuance but the journey was horribly chaotic.
"They evaded taxes and laundered money through the purchase of fake receipts that were later used to justify the issuance of checks whose amounts were deposited under a generic tax identification number, " Echegaray said, adding that HSBC never informed the AFIP tax agency about it.
Keep in mind that a debt reserve fund is usually created at the time of bond issuance, hence, interest payments out of reserves is nothing more than giving the bondholder back his own money.
FORBES: Even If A Bond Doesn't Default, You Can Still Lose Your Money
The rationale for curtailing merchant exchange fees rests on the belief that such fees are out-sized compared to the costs of issuance, which includes fraud-prevention measures such as entering a PIN number, but also refunding stolen money and replacing lost cards in the event of theft.
应用推荐