Tweet

From @AnnPettifor

Repeat after me (& Prof @ndrea_terzi ) Savings not a source of finance. Savings do not fund investment. Savings r consequence of investment.
— Ann Pettifor (@AnnPettifor) April 11, 2015

And this today

1. When people save in the form of a real commodity (eg corn) decision to save is a fully personal matter

2. In a monetary economy, saving is an act that reflects on others in the form of a financial claim

3. This means when we discuss financial savings we are also discussing debt: every penny saved is someone else's liability

4. In a monetary (as opposed to s non-monetary) economy each penny saved must correspond to a debt of equal size

5. In a monetary economy savings do not fund: they need to be funded

 - Andrea Terzi.