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| Giulio Tremonti |
Vo the ndo be very technical can be defined as the total bank seigniorage income arising from the currency. With reference to the emission of the euro banknotes in seigniorage income generated from the issuance of currency is defined as income rise from its assets held against notes in circulation and is included in the calculation of monetary income, according to Article 32.1 of the Statute of ESCB, is "the income accruing to the national central banks in of monetary policy functions of the European System of Central Banks. It is a very complex and difficult issue fits into his life only to those who have gobbled up (metaphorically) economic texts. But here we will try to make the matter a bit 'more' clear. As is often done in economics to explain complex concepts, we start from a basic example and then deliberately go over specifics. (Read More)
Suppose that in a community where there are no simple contacts with the outside (we assume an isolated city) there is no money exchanged and all products with the products. So those who produce tomatoes for a pair of shoes must give up a certain amount the vegetable in exchange for the shoes to the shoemaker. Assume that at some point a guy (we'll call banker) say they invented coins made of gold and that these coins can be used eg to buy products each of which needs without necessarily having to sell your product. Pay close attention to one thing: money is made in gold and not paper or metal and thus has a real value given by the quantity of precious material used to build it. Our money making banker now has to decide how much money to give to each inhabitant of the city. You do not get an agreement because it takes more than a carpenter and bricklayer, etc. so that the banker decides to give a quantity equally to everyone with the condition that everyone must return at the end of the year the amount of money to receive a five per cent. So if the builder receives 100 gold coins at the end of the year it will return 105. The interest (ie, five per cent) will take you from where? The carpenter can take from the qualepero 'at the end of the year will have only 95 gold coins. So our banker knows that he is asking for a thing (the interest) that not everyone will pay. Assume that at some point the people of our city we do not want to walk around with gold coins, but coins deposited in a safe dwelling of our banker who issues a document certifying deposit. That document notes (of € 5,10,20 etc.). Banknotes were born on plain paper always "struck" by our smart banker. At this point the banker thinks can furbissimo nost 'providing the amount of gold that is not hers but she is asking for a full availability of interest or other print banknotes for they too will soon .....
The shrewd banker is in reality the institutions issuing currency (now the ECB or European Central Bank while the pound was before the advent of the Bank of Italy) and citizens of the city in reality we are all isolated us. But there is a small detail that not many people know: 95% of the capital Bank of Italy is in the hands of private (commercial banks, foundations, etc.) and then that five per cent (which is actually physically can not exist) is the price that every citizen pays a few private citizens to own hard-earned money already with the work (not to be confused with the rate of interest on the sum borrowed).
because the Central Bank French and English are the state and the Bank of Italy is not it? It would be nice to have a response from those who say that to overcome the crisis must "consume".
October 28, 1922
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