Lesson 74 Learn English – Money, money, money – Causative

Lesson 74 Learn English – Money, money, money – Causative


session 74 money money money the money
created by banks isn’t a paper money that we receive from the trash machine
and hand over to a shopkeeper the central banker cash makes up for only 3%
of existing money the over 97% is what flushes up on a cash machine screen when
you check your balance banks are allowed to treat money in order to spent loans
mortgages etc and is simply an IOU from your bank to you in this technological
internet age men able to use internet banking to arrange our affairs pay our
bills etc ecommerce sales are growing by more than 19 percent every year and
could reach a staggering 1.4 trillion by 2015 with over 50% of the population of
the u.s. internet shopping regularly this means that you will likely handle a
small percentage of the money you n with the rest being passed digitally from
company to company this digital cash can effectively create a substitute for
actual money which in theory sounds like a safe secure and efficient system
however to understand the implications of a paper money free will you should
take a look at how the central bank created money and how the high street
banks won’t end their profits let’s say for example the central bank creates a
10 euro knows the cost of producing such a notes maybe 2 euros a hardy bank would
anticipate a demand for cash from their customers and purchase notes from the
central bank these notes were brought for their face value 10 euros for 10
euro the high street bank would then loan the money out to their customers
and charge interest this interest end would be the profits gained by the bank
in the meantime the central bank would take 2 euros from the money paid to them
by the Ashley Bank and used that to create more money the excess 8 euros
would be used to help fund health care education and other council services
keeping taxes down now when the customer approaches a high
street bank and makes a claim for a loan the bank does not give the customer
actual money rather it creates a deposit account to the amount new customer
wishes to lend for each loan that a bank makes in this way creates new money in a
report made by the Bank of England was stated commercial banks create money in
the form of bank deposits by making new loans when a bank makes a loan for
example to someone taking out a mortgage to buy a house it does not typically do
so by giving them thousands of pounds worth of bank notes instead it credits
their bank account with a bank deposit of the size of the mortgage at that
moment new money is created commercial banks do not have to pay anything
towards council services and so the lessening demand for actual money means
that taxes are raised in order to keep up with public demand for such services
where funding isn’t generated to pay for these services there must be cuts before
1844 only the government was legally allowed to create metal coins rather
than people carrying around all these coins they would deposit them with the
jeweller or the goldsmith he wouldn’t Ain give the customer a
piece of paper stating the value of the coins deposited for security the
shopkeeper would take the coins to adjust urbana eventually most
shopkeepers would simply accept the paper receipts as payments saving a
customer at the effort of depositing and withdrawing constantly as a result and
use small percentage of deposits were ever drawn noticing this the shopkeepers
realized that they could lend out the remainder of the money and charge
interest thus earning themselves a profits favour to this being the many
shops would now accept the paper receipts the Goldsmith’s and jewels were
able to give borrowers said receipts while without coins
even if the shopkeeper had only 1,000 pounds in the vault they could now lend
out tomorrow the power to create a
substitute for actual money was born and banks were allowed to create money from
nowhere

Leave a Reply

Your email address will not be published. Required fields are marked *