Who's getting rich from your mortgage? Spoiler: it's not the bank. www.youtube.com/watch?v=kidX... - ThreadSky

garyseconomics.bsky.social • 62 days ago

Who's getting rich from your mortgage? Spoiler: it's not the bank.

https://www.youtube.com/watch?v=kidX8prVIgY&t=489s&ab_channel=GarysEconomics

Comments

everyting.bsky.social•61 days ago

If money is created as a debt and loaned at interest wouldn't that make the debt un-payable ?

musicalchairs.bsky.social•61 days ago

not if private debt keeps increasing, or Govt deficit spends, or country reduces its current account deficit

everyting.bsky.social•61 days ago

I’m talking about the national debt as a whole, sorry for not being clear. For example, If only £1 exists and I loan it you and ask for £1.50 as interest where does the extra £0.50 come from?

musicalchairs.bsky.social•61 days ago

Ah right. When banks make a loan of £1,000, they create £1,000 of brand new money and add it to a bank account. So, the total amount of bank deposits increases by £1,000.

auld-boy.bsky.social•61 days ago

Glad your posting on this app. Welcome.

vinnymomac.bsky.social•61 days ago

From the 'Horses Mouth' so to speak...
Charts an' all.
https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy

malakarma.bsky.social•41 days ago

When you describe people as 'rich' who lend money to banks, and also people who parents are rich so they can live with them instead of renting or getting a mortgage (which quite a lot of young people do while saving for a house these days). Are you talking about the same sort of people?

derek-the-viking.bsky.social•60 days ago

I think this was probably your best video yet. I had never really thought about it in the way you described.

garyclarke.bsky.social•62 days ago

Ordinary people don't have the power to tax the rich. Protection from a lifetime of debt comes from coordinated local action. Council run ethical letting agencies and tenant owned housing associations.

dlawbailey.bsky.social•62 days ago

And doesn't MMT potentially obviate this trap?

dlawbailey.bsky.social•62 days ago

Suppose the central banks started buying mortgage bonds.
Wouldn't that be a structural way to move wealth to government?

lucyfyson.bsky.social•62 days ago

You're doing brilliant work Gary and - per your suggestion at the end of the vid - I have told my mum and you've gained a fan.👍

chhinnamasta.bsky.social•62 days ago

Great piece Gary- please talk to @zackpolanski.bsky.social. If you want to get your ideas turned into actual policy the Greens are the only party who are promoting wealth taxes and they need support from people like you!

saturdayschild.bsky.social•62 days ago

Oxfam have a 'Tax the Rich' campaign too

rudeeru.bsky.social•62 days ago

Oxfam are brilliant campaigners. Have supported them regularly in the past. But requiring my data collection for digital chugging purposes as a price for supporting their wealth tax campaign seemed really cynical.

born2reside.bsky.social•61 days ago

And if you take on more debt as a result of accepting increased respite costs - you will, consequently, have to accept worse working conditions and terms. Above & beyond/pacework will be normalised, because your viability is now less secure, it is easier to leverage against you.

saturdayschild.bsky.social•62 days ago

Could you be basic for me and do a flow chart of this please?
The super-rich buy bonds and put money in the banking system, the bank use the bonds/credit to lend, the borrower pays the bank interest, the bank pays the interest to the super-rich?
Have I understood that right?

rudeeru.bsky.social•62 days ago

I’d love to see G’s vids accompanied with super clear info graphics illustrating the key points.

musicalchairs.bsky.social•61 days ago

Here you go. It's dead simple. Bank loans create bank deposits. Banks will always create new money to make a loan to a creditworthy borrower.

ernesto666.bsky.social•60 days ago

It’s actually not dead simple. Let’s not follow the Trumpian cults misrepresentation of facts.

There is information on money creation on the Bank of England website, it doesn’t go into detail but tells you enough to know nothing about bank regulation is dead simple

musicalchairs.bsky.social•60 days ago

Loans create deposits. That is simple. The regulatory framework that governs credit creation, bank risk, equity requirements etc is complex. What's your point?

adybee.bsky.social•60 days ago

illluminati.bsky.social•60 days ago

Agreed! Understanding monetary policy requires nuance. Let's stick to facts & reliable sources. 🤓

couchpotheado.bsky.social•61 days ago

Saw your interview with Pierce last night. Great work! Thanks for what you're doing, Gary!

ckerchum.bsky.social•62 days ago

What do feel about labors chances,
https://youtu.be/C7SlaUJzbPU?si=6eskzsMlsvmCjTzp

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