@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.

 

OVER 30 MPs debate #MoneyCreation and Society – #Cash vs #Credit – Governments vs #Banks

UK Parliament debated Money Creation and Society for first time in 170 years.  Here’s what they said – on this video – starting at 11:18:

London, 21^st November 2014

On Thursday 20^th November 2014 over 30 MPs took part in a debate in the House of Commons on money creation and society. This was the first time in 170 years, since the Bank Charter Act in 1844, that the topic has been fully debated.

 

Money creation affects almost every aspect of our lives, and is directly connected to almost all public policy, including public and private debt levels, house prices, and rising inequality, but it’s very poorly understood. A recent poll found that 7 out of 10 MPs believed that only the government can create money[1], when in fact 97% of money is created by banks as they make loans, as recently confirmed by the Bank of England[2]

 

MPs acknowledged the problem of their own lack of understanding of money creation [1]:

 

Peter Lilley MP stated that “A lot has been made of the ignorance of Members of Parliament of how money is created. I suspect that that ignorance…… explains many things, not least why we entered the financial crisis with a regulatory system that was so unprepared for a banking crisis.”

 

Zac Goldsmith MP was the first to admit at the debate that he does not fully understand the system, stating, “I suspect that most people here would be humble enough to recognise that the banking wizardry we are discussing is such a complex issue that very few people properly understand it.”

2013 in review – as banksters rule the world with money as credit when it could also be interest-free

The WordPress.com stats helper monkeys prepared a 2013 annual report for this blog.

Here’s an excerpt:

The concert hall at the Sydney Opera House holds 2,700 people. This blog was viewed about 8,700 times in 2013. If it were a concert at Sydney Opera House, it would take about 3 sold-out performances for that many people to see it.

Click here to see the complete report.