Poirot, I take that to be a clear message to Abbott from Uncle Rupert "Shape up or ship out". Sorry that should read "Shape up or we will ship you out". After reading that me thinks Abbott would have been reaching for a stiff brandy.

25% of the Big Clive Party has done the bolt! Jacquie's gone.

Aidan,

Vivid examples of reserve banks "creating" money out of thin air were in Germany after WW1, Argentina in the 70s and recently in Zimbabwe where the currency collapsed completely. That Greece, whose reputation for fiscal honesty is somewhat tattered, would not simply print money rather than going bankrupt and inflicting incredible misery on its people, wildly contradicts your version.

Considering that the BOE article you linked was about commercial banks not reserve banks, I find nothing to support your argument that orthodox economic theory is incorrect, and would suggest that in order to retain any credibility for your fringe theories that you provide one credible link.

Shadow,

I did specifically mention on this thread (over a week ago) that I support the use of tight fiscal policy to control inflation. But hyperinflation's never caused by money orinting alone; there's always at least one other factor. For example Germany after WW1 didn't have an effective taxation system. As soon as they imolemented one, the currency stablilized again.

Greece was not averse to printing money when it had its own currency, but now it's in the Eurozone it can not. Only the European Central Bank has unlimited credit in Euros, and it's denying Greece fhe benefit of that. There's no contradiction.

Orthodox economic theory does not claim central banks have to borrow money before they can lend it (or even after they lend it) and you have not supplied any links (credible or otherwise) that even claim they do, let alone have any evidence.

Prof Bill Mitchell's site http://bilbo.economicoutlook.net explains the real situation in a way that's consistent in theory and reality. But since it contradicts a lot of rubbish you think you know, I expect you'll dismiss it as not credible!

Just up here in sunny Queensland, interesting lot these Queenslanders. Watched a bit of TV last night. They are being brainwashed by this Hardboiled Newman bloke. The TV was wall to wall ad's telling the locals what a fantastic job the government is doing. Just stopped short of saying VOTE 1 HARDBOILED. All this propaganda is paid for by the taxpayers. Went out side in the dark ran into my first live cane toad, lucky me.

Aidan,

I spent some time reading the "billy blog" and read that he considers himself an extreme left liberal. His posts similarly are extremely left whinge opinion pieces with only occasional oblique references to either theory or fact. I also looked for any reference to reserve banks "creating money" without funding this through the issue of bonds, and I could not find this anywhere.

Looking at every major economy, the stimulus is funded by the issuing of bonds incl the US, Japan, Germany, France etc. I cannot find a single example of "printing money" outside the 3 disasters I mentioned previously.

I am still waiting for you to provide a single credible link i.e. from a bank showing what you claim.

Secondly, I can understand that for those like you with no formal education in economics that the subject might appear to be magic and the gods such as Keynes and Friedman make pronouncements that are followed slavishly by lesser mortals. However, economics as taught at universities is not based on opinion, but on careful mathematical analysis of the markets and human interactions, and are not refuted by opinion pieces from fringe dwelling professors.