- Published on Tuesday, 24 May 2016 07:43
A while back there was discussion of QE in Critical Thinking, its rationale, effect and speculation on where it's taking us. The Quantity Theory of Credit was presented in April 1993, at the RES Annual Conference at York by Richard Werner, now professor of international banking at Southampton University. Here he explains the distinction between credit which drives GDP and credit which drives asset prices and the power of the short side.
Quantitative Easing and the Quantity Theory of Credit by Richard Werner
While the effects of QE continue to be debated, Richard Werner1 explains the origin of the term (and some misconceptions surrounding it).
The power to control money grants control over everything else, which is why understanding the process and effect of money creation is so important. Those that control global banking, control the world and only by taking away their power can we solve the problems in the world. That power is derived from, and exercised through, economic flaws: control of the commons (including land and resources) denying the rest of us access to the means to life; and the alchemy of interest on money. Once people understand the importance of money, the impetus to take away control of money from Rothschilds et al will be unstoppable.