Steve Keen

They drum that into students in first year.

They ridicule anybody who says money matters.

But then they teach them two models just to say, hey, we know how the banks operate.

We can show how they create money.

And they come up with this trivial idea called the money multiplier.

And not only is it false about what banks actually do, again, using double-entry bookkeeping, I can prove that that system only works if all loans are in cash.

Now, they're not.

So it's nonsense.

Yeah, yeah.

And this is why, I mean, I didn't learn accounting at university either.

Though funnily enough, when I led the student revolt against economics at Sydney University, the professor of accounting and the accounting staff assisted me in that battle because they loathed the economists.

So the accountants supported me.

My leaflets were printed on the accounting department's machines.

Even when I put in leaflets, I'd type them up or handwrite them, and the secretaries would type them.

If I typed them, they'd correct spelling mistakes.

So the accountants were on my side way, way back 50 years ago.

But when you learn the accounting, as I've done by building my software Revell, you just realize that the ideas that the economists have simply don't stack up

in accounting terms, because accounting is a prohibition.

It shows you some things that you think can be done, can't be done.

And economists are unaware of that, so their models actually violate double-entry bookkeeping, and they're not even aware that's happening.