Currently money creation is for 95% to 97% in the hands of private banks. <\/p>\n\n\n\n
Vollgeld wants to have it in the hands of the government.<\/p>\n\n\n\n
The issue with that is that we usually like market working.<\/p>\n\n\n\n
New idea: what if you would have the government create the amount of interest banks get on their created money for loans yearly to spend in the economy and projects. Because the banks don’t create that, so it needs to come from new loans or collateral that is pledged.<\/p>\n\n\n\n
Would this create more inflation?<\/p>\n\n\n\n
I’ve got a theory that it actually creates less inflation.<\/p>\n\n\n\n
Reint Jelger Baarda<\/p>\n\n\n\n
Reint Jelger: Does the idea of VOLLGELD want money creation in the hands of the government instead of with private banks?<\/p>\n\n\n\n
Google Gemini: Yes<\/strong>, the core objective of the Vollgeld (Sovereign Money) initiative is to strip private commercial banks of the power to create money electronically through loan origination and grant an absolute monopoly on money creation to an independent public authority\u2014specifically the central bank.<\/p>\n\n\n\n Under a Vollgeld system, all money\u2014whether physical cash or digital bank deposits\u2014would be exclusively created as sovereign money<\/strong> (Vollgeld<\/em>).<\/p>\n\n\n\n While Vollgeld moves money creation into the public sphere<\/strong>, advocates (such as Joseph Huber and the Swiss Vollgeld-Initiative<\/em>) explicitly draw a distinction between control by the elected government and control by the central bank:<\/p>\n\n\n\n Under Vollgeld, private commercial banks are reduced to what Werner describes in the Financial Intermediation Theory<\/strong>:<\/p>\n\n\n\n Currently money creation is for 95% to 97% in the hands of private banks. Vollgeld wants to have it in the hands of the government. The issue with that is that we usually like market working. New idea: what if … Weiterlesen How Vollgeld Alters Money Creation<\/h3>\n\n\n\n
Feature<\/th> Current Banking System<\/th> Vollgeld (Sovereign Money) System<\/th><\/tr><\/thead> Money Creator<\/strong><\/td> Private Commercial Banks<\/strong> (create electronic bank deposits ex nihilo<\/em> when issuing loans).<\/td> Central Bank Only<\/strong> (as a public, independent monetary authority).<\/td><\/tr> Bank Deposits<\/strong><\/td> Unsecured IOUs on a bank’s balance sheet; vulnerable to bank runs.<\/td> 100% legal tender, held off the bank’s balance sheet (100% safe).<\/td><\/tr> Role of Banks<\/strong><\/td> Money creators and<\/strong> financial intermediaries.<\/td> Pure financial intermediaries<\/strong> (can only lend existing central bank money).<\/td><\/tr> Seigniorage<\/strong><\/td> Largely captured by private banks via interest on newly created credit.<\/td> 100% public revenue transferred to the government budget or distributed to citizens.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Clarifying «Government» vs. «Central Bank» Control<\/h3>\n\n\n\n
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Impact on Private Banks<\/h3>\n\n\n\n
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