This is where depositors help, because their cash provides the bank Repayment, which appears on the asset side even though at this point it is only anĮxpectation. The balance sheet balances, because the outflow is balanced by a promise to By the stroke of a pen theīalance sheet of the bank was expanded, and magically without any cash inflows.

With a claim against the borrower on its asset side. The account of the borrower, debiting its own balance sheet, and credit the bank Need depositors to lend them money to lend or invest it. To create money out of thin air not public but private money, with a call-option toĬonvert this private money into public money. Italy, not in England (the origin of the common law) is key for the ability of banks’ The double bookkeeping system, which originated in Financial assets are created at the intersection of legal,Īccounting, and tax rules. The legal code is not the only code that configures wealth accounting rules Social resource: from law, or government largess in the form of central bank Or other oppressed classes, although this is happening as well, but from a common The expropriation of surplus is not just from slaves, labor The “Code of Capital” tells a different story not labor,īut state power is the fountain of wealth it can be retooled to produce and protect

Through a process that allows capital to expropriate value from labor. Than just the combination of raw material. It is not a new argument to say that there is more to the production of goods Much deeper problem: the natural constraints on social systems that seem incapable of self-policing their limitations and their compatibility with the natural Systems and this clash has manifested itself in “climate change”, a catch word for This sets the two systems up for a clash with natural Natural systems are bounded, but social systems (includingĮconomic systems) are not.

Tradable assets or ideas into patents is a matter of choice and legal accommodation, not scarcity. With respect to intangibles, the underlying “asset” is itself a product of the law.

Rather the powers it conveys, is not scarce it can be applied to different claims andīe transposed from one asset to another. Good is secondary what matters is the legal coding. “stuff”, but about a legally enforceable claim to expected returns. Sense) can issue fiat money literally without limitation. States (at least states that are sovereign in the monetary Yet, the key resources that fuel economies are money and capital, It assumes that economics in general and markets in particularĪre primarily about the allocation of tangible goods, or “stuff” that exists only in 'Modern economics is commonly defined as the study of the optimal allocation of 2.1 State Power, Private Power, Data Power.

Pistor the code of capital