Significantly reduces use of fossil fuels farm machines and transport of crops Makes use of abandoned or unused properties No weather related crop failures Offers the possibility of sustainability for urban centers Converts black and gray water to drinking water Adds energy back to the grid via methane generation Creates new urban employment opportunities Reduces the risk of infection from agents transmitted at the agricultural interface Returns farmland to nature, helping to restore ecosystem functions and services Controls vermin by using restaurant waste for methane generation No-cost restoration of ecosystems:
October 29, As many of you know, I have spent much of the last seven years explaining to anyone who will listen that banks do not "lend out" deposits or reserves. Rather, they create both loan assets and matching deposit liabilities "from nothing" by means of double entry accounting entries.
Creating money with a stroke of the pen or a few taps on a computer keyboard is what banks do. But this does not mean that the money that banks create comes from nowhere. It is only created when they lend or when they purchase assets, which is equivalent to lending.
As Pontus Rendahl explains in a comment on my previous blogpostwhat banks do is liquidity transformation - exchanging long-term illiquid assets for short-term liquid ones: How do private banks create money? They create a deposit.
But as with currency pegs, such exchange rates can only be maintained if the bank has a healthy asset side on the balance sheet, and sufficient reserves. But did the bank create this deposit out of nothing? No, it created the deposit out of an asset; a loan.
That is not "out of nothing". In fact, it's very far from it; a more accurate description is that the bank converted an illiquid asset the debtor's future ability to repay into a liquid one.
It would be insolvent. This is not creating money "from nothing". It is exchanging new money for assets. At the end of the lending transaction, there is an illiquid asset on the bank's balance sheet that wasn't there before, and an equivalent amount of new money in the customer's demand deposit account.
We could call this commercial bank QE, if you like - except that for commercial banks, it is not in any sense "unconventional" policy, as it is for central banks. For commercial banks, it is their entire purpose. If they didn't do this liquidity transformation, they would not be banks.
All money that banks create is their own liability towards a third party - in other words, it is debt. This debt money is always backed by an equivalent claim on the income and, as a last resort, goods of a third party.
The problem for banks is that the debt they owe to their customers as a consequence of lending is short-term and highly liquid, whereas the debt their customers owe to them as a consequence of lending is long-term and illiquid.
When the customer draws down a loan - or, for that matter, when a customer draws any money from their deposit account, whether or not it is created through lending - the bank must have sufficient cash, or liquid assets readily exchangeable for cash, to pay them.
But banks don't keep much in the way of liquid assets: Therefore, although banks create money when they lend, they still need to borrow money when they make payments.
It is bad accounting to assert that "banks create money when they lend" without recognising the funding problem caused by liquidity transformation.
So although we often say banks create money "from nothing", what we really mean is that they create money from lending. And the purpose of the lending is completely irrelevant. Money created for purposes that Zoe Williams in the Guardian dubs "unproductive", such as mortgage lending, is just as much money in circulation as money created for what she calls "productive" lending to corporations.
Who are we to judge what is "productive" and "unproductive"? People who buy houses don't just create work for lawyers and estate agents, they spend a lot of money on doing up their houses - money that people who rent often either can't or don't want to spend.
They also free up money for other people to spend. If what you want is demand, mortgage lending sounds like a good bet.A Malthusian catastrophe (also known as Malthusian check, Malthusian spectre or Malthusian crunch) is a prediction that population growth will outpace agricultural production – that there will be too many people and not enough food.
was an eventful year -- a half-century ago, humans were making strides toward space travel beyond the Earth's orbit, and Tokyo hosted the 18th Summer Olympics.
Aug 11, · Phillip Lopate’s recent books are the essay collections “Portrait Inside My Head” and “To Show and to Tell.” He directs the graduate nonfiction program at Columbia University.
The Global Financial Crisis and Its Impact Words | 8 Pages. The Global Financial Crisis and Its Impact The recent Global Financial Crisis (GFC) initially began with the collapse of credits and financial markets, which caused by the sub-prime mortgage crisis in the US in The table below presents an abbreviated geologic time scale, with times and events germane to this essay.
- LITERATURE REVIEW There are too many studies about crisis because crisis are experiencing anywhere and anytime in the world. I have scanned many articles about types of crisis and examples of them. There are too many article but I can’t found any containing two of them together. was an eventful year -- a half-century ago, humans were making strides toward space travel beyond the Earth's orbit, and Tokyo hosted the 18th Summer Olympics. The essay will first place the possible causes that led to the downturn in the financial position of the various economies across the world and finally it will talk about the methods that UK government can adopt to prevent itself from the hazards of next financial crisis.
Please refer to a complete geologic time scale when this one seems inadequate. Financial Crisis Words | 15 Pages. global financial crisis was exploded in This was the most serious financial crisis since the economic depression which occurred in s and it severely impacted the global financial market.
Lots of corporations collapsed during the financial recession which was caused by breakage of capital chain.