Impact of Monetary Policy in Numbers

[AsifShiraz]

Hi,

I'm interested in finding some statistics that show the practical, negative impact of violating the principle of sound money. Any articles, or directions for further researching this would be much appreciated.

As an example, let us say that the Banks have this unfair advantage of creating money. Under sound money, full reserve banking, they would charge commissions for real financial intermediation in terms of matching investors to entrepreneurs, and not just sit there taking interest on non-existent money. But they would still make profits, only lesser.

So are there any statistics to show
a) What is the projected extra income which large banks have made because of this feature of fractional reserve / money creation
b) What is the quantity of the resulting imbalance in distribution of wealth
c) What role the same plays in bigger context i.e. Central Banks and Government, vis a vis the people.
d) US dollar is the reserve currency of the world. But people in Europe, who do not have reserve currency advantage, enjoy pretty much similar standards of living. What statistics are there to show the "extra" wealth US has acquired owing solely to its ability to issue unlimited reserve currency?

Intuitively, what I'm asking is, why
a) the US among other advanced countries,
b) and Banks among other lines of business,
not exorbitantly and visibly much more richer than the rest, so as to make the impact of this money creation capability blatantly obvious?

Thanks
Asif Shiraz

 

[The Gold Standard]

There are no statistics to show what you are looking for. It would be impossible to quantify. But to answer your other concerns:

1. People in Europe don't enjoy the same standard of living Americans do.
2. Much of the extra wealth is in the U.S. military industrial complex which covers the Earth and is the reason European countries don't have to steal even more money from their people to fund their own militaries.
3. The financial sector is disproportionately large compared to other industries, and when you factor in the industries that are government subsidized and/or controlled by the bankers' loose money, it dwarfs any productive portion of the economy.