Recapitalizing EuroZone Banks ; by jcs

Recapitalizing EuroZone Banks ; by jcs Luxembourg; december 6, 2013 Hi folks, you may be interested to see the relationship between   your, and every else’s - interest payments to the commercial bank, and  -  bank assets, bank profit, debt and money (monetary mass) in circulation. The following paper Recapitalizing EuroZone Banks; by JCS explores all of that, looking at the case where you -         do not pay interest nor principal, -         do pay interest, but not principal -         do pay interest and principal over x years and determines whether monetary mass and debt change synchronously or not. (They do, synchronously ) After that, the paper goes on to examine what happens when the bank tries to save some of its profit into its capital reserve         - when interest is paid but principal not        (money comes down but not debt)         - when both interest and principal are paid                                    (money and debt both go down, but money goes down faster ) showing that what is going on these days ( end of 2013) with commercial banks thin on capital trying to save their profits and reduce their loans  does not help at all to conclude with the proposal to  inject Money-No-Debt into the commercial banks, after nationalizing them for 2 weeks,  and before reselling them to the market after that. Comments welcome at jcswork@pt.lu