@TEDTalks The Privatisation of the Creation of #Money @BjergOle

Ole Bjerg is an Associate Professor of Copenhagen Business School. He identifies beautifully the critical aspects of the creation of money:

  1. the difference between
    • Paper Money [Cash – about 5% of the money supply] and
    • Electronic Money [Credit – about 95% of the money supply]
  2. the negative consequences:
    • instability
      • banks issue money when the economy is booming and hold back otherwise;
    • inequality
      • interest is a ‘tax’ on money
      • with growing inequality based on the level of interest rates
    • concentration of power
      • how much money?
      • at what price?
      • for what purpose?
  3. Hence politicians appear to be impotent, as decisions are made in board rooms of banking institutions – outside democratic institutions.
    • the smart solution is an update of what Central Banks do with respect to PAPER money to INCLUDE electronic money;
      • all citizens should have accounts with Central Banks!
    • Commercial banks continue to
      • take deposits and lend it
      • as a LINK between people who save and who borrow.
  4. This is a SOVEREIGN system of money creation – reminding citizens to
    • understand the creation of money
    • participate in the political process of deciding WHO creates money.

 

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4 responses to “@TEDTalks The Privatisation of the Creation of #Money @BjergOle

  1. Funny how it won’t play and you can’t search it on Ted Talks as well?

  2. The following project may be of great interest. Just click on my badge with “Zeus” on it, and find out…….

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