'The Fed, not the Government, is the Monopoly Issuer of Currency'

from econintersect.........

"However, the conventional formulation of MMT is making what I believe to be a fundamental and critical error by assuming that “government” is the monopoly issuer of currency. In fact, the Federal Reserve Bank issues about 4% of all US money as banknotes, which function as the “currency”; and the commercial banking system issues about 96% of all US money as loans of bank deposit money, which are “debt” to the borrowers (we won’t even engage the shadow banking system that creates trillions of additional monetary credits and obligations as derivatives). 96% of our money is issued as ‘loans’ by private banks. 4% of our money is issued as banknotes by the central bank. The US government and the US Treasury issues exactly how much money? $Zero"...............READ MORE