Depleted economics - and why it happens

Depleted economics - and why it happens
by Marco Saba, president at IASSEM, April 17, 2016

The depleted economics is defined as the normal economics with a lower content of two very active isotopes: money and banking.

Most commentators in economics forget to tell that the point is how do you account for money creation. A fiat money with no real liability associated - because it is irredeemable - must be accounted as an asset in the cash flow account at the time of creation before being spent or lent out. In accounting terms CASH is: coins, banknotes AND deposits (the same as in the definition of the M1 aggregate). By removing the ASSET quality of that money the bankers are appropriating the seigniorage on the principal (capital). In a 100% sovereign nation, the money created by banks should be an asset for the bank and a corresponding liability to the Treasury. I.e. the Treasury should write in his books an entry corresponding to the 100% seigniorage on the capital creation received from the banking cartel as an asset - and a liability to the public of the same sum.

The difference from the government earning this seigniorage is that the government shall respond politically to the public of the sum involved while bankers do not.

You have to read this paper to understand the accounting point: Cash Flow Accounting in Banks— A study of practice, Ásgeir B. Torfason, University of Gothenburg, 2014
https://gupea.ub.gu.se/handle/2077/35272

This problem is so important that the Swiss central bank this year suppressed completely the CASH FLOW STATEMENT from her annual report, here: Torfason-Syndrome*: the Swiss central bank suppress the cash flow statement
http://leconomistamascherato.blogspot.it/2016/04/torfason-syndrome-swiss-central-bank.html

It is the same approach we have on radio-toxicity cancer-causing of nuclear radionuclide: DON'T LOOK, DON’T FIND !