Welcoming the G20 to Toronto:

Lecture notes in progess
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http://www.theglobeandmail.com/news/world/g8-g20/economy/harpers-bank-tax-victory-has-left-some-scars/article1598602/

Government fait currency & Deposit currency, the same thing and not the same thing at the same time
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Two ways a government can access the money supply: Printing paper notes -- or regulating their domestic bank of clearance

fund
Fiat currency/paper currency

Key developement is that their is a world currency at the same time their are local currencies.
The world currency is the international bank of clearance (Basel commission): the mechinism of settlement of all nation's deposit currencies, trading with each other. The World Trade Organization, the World Bank, and the IMF are all organizations, in part co-ordinating the value of a local nation's currency value. Through managing withdrawels of a nation's deposit currency fund, into anthor currency.

A nation's currency value on international markets (international bank of clearance macro aggerate deposit currency, is a combination of balance of trade payments of their people's importing and exporting -- and the conversation of deposit currency into foreign currencies,


The idea is that a balance of payment is only a part in the motor that creates a currencies value. And that banks lending funds, that then are converted to a foreign currency, creates obligations for a government fiat beyond the regular importing and exporting habits of that nation -- external to a government Fiat currency, yet creates obligations. Thus the need for international cooperation and coordination. Need for tools, in that a country's federal reserve have access to foreign currency and gold to protect their local currency from deposit currency withdrawel into a foreign currency.

Key idea in modern nation's understanding of what a fiat currency is, and how the bank multiplier effect, creates anther order of currency, that is actualy the currency of nation; therefore a finance minister has little power to regulate their nation's currency. Proof. Size of Canada's fiat currency of 50 billion, smaller, way smaller than the amount of deposits in Canada's banks.



Alternative to a bank tax and or import tax, is