Category Archives: Cash

@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, 21st November 2014

On Thursday 20th 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.” Continue reading

#MoneyCreation debated by MPs 320 years after the #BoEAct1694

English: The expansion of $100 through fractio...

English: The expansion of $100 through fractional-reserve lending at varying rates. (Photo credit: Wikipedia)

The writers of the Bank of England Act 1694 had the intention

to avoid the serious oppression of Their Majesties’ subjects.

Hence they didn’t allow the Corporation to trade. Should it trade after all, it would have to pay as punishment:

treble the value of the trade.

In theory, this means that the BoE would have to pay the Treasury treble the value of all national and public debt bonds!

Will MPs appreciate this when they debate ‘money creation and society’ this Thursday as part of Backbench Business?

See   Parliament Debate, including the link to watching the debate live .

Further info on Facebook and  these Google results.

BACK TO the Future: from 1914 (WWI) to 2014 (Bradbury Pound)

13 10 09 Money Matters

13 10 03 ERC BradburyThis 48-page booklet (1981) and this 200-page book (1986) are as fundamental as The Money Bomb (1983) – and as true and relevant today as there and then – if you want to understand how ‘money’ has changed from being a ‘medium of exchange’ to being used as a ‘tool for control’!

The title says it all: Government Debt and Credit Creation! 

GERMAN Video with English Links about the New World Order [wailing wall], a remarkable global news agency, published in Switzerland, that presents online news very smartly in mainstream media style.

This video contains the following stories [the links take you to different but English stories]:

  1. Rothschild’s $200 million bet regarding the demise of the Euro
  2. The Bank of North Dakota as a state-owned bank for the state’s citizens
  3. A few families rule the World
  4. Who rules money?

Fascinating are the differences in language, implied by German and English. I.e. the German word for ‘citizen’ implies the ‘guarantee’ for debts! The German for ‘debt’ is the same as for ‘guilt’. The German for ‘interest’ is very different from paying interest and having an interest.

  • Nice cartoons illustrate how 98% (rather than 97) Credit [created by banks at interest] and 2% (rather than 3%) Cash [created by governments interest-free] are the money in circulation.

Santa Claus creating presents from thin air – a video making fun of ‘economics’

As a mathematician and systems analyst, I have long claimed that economics is a ‘pseudo-science’. It was set up deliberately to camouflage what central bankers and other banksters are doing: create ‘money’ from thin air and charge interest for it that never gets created…

This becomes apparent when you learn that ‘money’ is never the subject of teaching at the London School of Economics, let alone the difference between Cash and Credit. When the daughter of the author of The Web of Debt wanted to write her thesis about the national debt, she was told “that is not capitalism”, i.e. it’s more a religion than a science!

Deck the Halls with Macro Follies is a video that makes fun of economic jargon and consumerist slogans – as a way of re-confirming those of us ‘in the know’ and possibly allowing some viewers to question what’s going on in terms of ‘Macro Follies’.

It’s Time to Fix Banking – a Petition in the Right Direction…

English: A crowd forms on Wall Street during t...

English: A crowd forms on Wall Street during the Bankers Panic of 1907. (Photo credit: Wikipedia)

It’s nice to see when ‘beginners’ in monetary reform tackle our systemic money problems, by tackling the banking issue. Here are the four simple demands that 38 Degrees have formulated in their petition It’s Time to Fix Banking:

Dear Banking Committee

Please hold the banks to account for the way they’ve behaved. The scandals need to stop. You need to make sure:

  • Banks put customers first, not bankers
  • There are tougher rules to keep banks in line
  • There are proper punishments for bankers who break them
  • It’s easier for us to move to a different bank when we want to.

But no banking regulation and no punishment of bankers will change

  • the Government’s dependence on public debts
  • the Government’s unwillingness to spend the Cash that it can print and mint into the economy
  • the Government’s willingness to bail out banks rather than businesses…

And thus we know better than ever: money rules the world, as created by banks, not in the spirit of the writers of the Bank of England Act 1694 though!

New Book on the Real Issue: A Guide to the UK Monetary and Banking System

Thanks to the remarkable net-working of the New Era Network, I received the announcement of a book that is long overdue:

Where Does Money Come From? A Guide to the UK Monetary and Banking System

I.e. This book looks at money and not economics as the pseudo-science that covers up what central bankers, banks and other financial institutions are doing, with the Government sanctioning it.

Amzon publishes customer reviews and here’s the one by Quaker James Bruges of the New Era Network:

He opened: “Spiralling inequality, chaos in the financial world and the Occupy protests force us to engage with economics. A Guide to the UK Monetary and Banking System is about money itself, a subject that has, surprisingly, received little attention and about which there is widespread misunderstanding.”

Selected extracts:

Tony Greenham, Richard Werner and Andrew Jackson, studied the implications of bank-created money through talking to key people in the City, including members of the Independent Commission on Banking, and referring to 500 documents from central banks and regulators.

On receiving a copy of the completed book, David Miles of the Monetary Policy Committee, Bank of England, said, ‘the way monetary economics and banking is taught in many – maybe most – universities is very misleading and what your book does is help people explain how the mechanics of the system work.’

Banks charge interest on loans, necessitating the amount of money in circulation to increase each year in order to cover this interest. The choice is either growth or recession. It was a Quaker philosopher, Kenneth Boulding, who quipped, ‘Anyone who believes in indefinite growth in anything physical, on a physically finite planet, is either mad or an economist.’

The government wants banks to finance the productive sector but ‘the government has in practice no involvement in the money creation and allocation process’. It is not surprising that little of the vast sums given to banks have been loaned to small businesses, which they regard as risky. The banks have invested most of their windfall in assets such as prime property, the value of which is enhanced by Russian oligarchs.

The book discusses financial instruments that ‘are increasingly traded in a money-like fashion, moving around the world at great speed and frequency by investment banks and hedge funds’. The financial elite, joined by African dictators and corporations, have salted away £3 trillion tax-free in secret locations, many – perhaps most – of which are UK protectorates or ‘British Overseas territories’, the City of London itself being one of them. The UK loses £70 billion in tax annually. The value of trade in financial derivatives is ten times the value of all goods and services in the world. No one knows what’s going on but these activities are the cause of global instability and deprive governments of funds to help those in need.

James concluded that the present monetary and banking system is at odds with Quaker testimonies to integrity, justice, equality, community and the environment and called on Quakers to help to develop an alternative to laissez-faire capitalism that relates to real life in all its local variety, provides social welfare, and encourages cooperation, creativity, relationship and play.

The full review is here.

A massive financial con trick foisted on the voters – by the dictators of the West

Robert Fisk would call a spade a spade in his article The bankers are the dictators of the West:

  • he asks his collegues in Wall Street why they don’t report ‘properly’
  • he blames Western governments for giving their power to banks, derivatives traders and rating agencies
  • he points to the “slovenly and dishonest coterie of experts from America’s top universities and think tanks”.

Maybe 2012 will become the year of enlightenment when enough people will realise the con tricks in operation, ever since the first central banks were created in Sweden and the UK:

  • the creation of “credit” from thin air that is being sold as “money” – but at interest
  • the deadly embrace between central banks and national treasuries
  • the complete con and illusion that governments are entitled to take “taxpayers’ money” in order to spend it.

Continue reading

Q: Where does Money Come from? A:Thin air, sold at Interest

As often in life: the answer is so simple that people can’t and don’t want to believe it…

This book is new in our armoury, as Anne Belsey from the Money Reform Party writes:

MRP e-Newsletter

November 2011

Let’s be the Voice of Authority

Since the European Conference on Banking in September and ever more since last month’s Positive Money conference, I have been pondering on what to do next. Particularly, I have been thinking about the book Where Does Money Come From?.

I think that this book is an excellent new weapon in our armoury. This is not because it is better than other books, such as Mike Rowbotham’s The Grip of Death, or Helen Brown’s The Web of Debt, or any of the many works produced by James Gibb Stuart over the years, or, indeed, better than any of the many other publications by money reformers.

What sets this book apart is its provenance, particular with respect to the writer of the foreword. This gives it an authority with which all previous writers cannot compete. With such a book in our hands, we are no longer a crazed minority spouting some nonsense about banks creating the money supply. Suddenly, we have become part of the Voice of Authority on the subject.

We live in a world where it is not a matter of what you say or what you know, but who you are. It was ever thus. Over the centuries, sententious individuals have set themselves up to be the Authority on some matter or other, and their view has prevailed (until the contrary evidence became overwhelming), because thinking things through is difficult for most people and not helped by the fact that many people are able to hold two contrary ideas at the same time.

I have heard MP s on the radio talk about about the need to reduce debt within our economy and then a moment later to talk of the need to get the banks lending again, without apparently noticing the evident contradiction in their statements.

Let’s educate our MP s

We need to educate our MP s and we now have the means to do it – WDMCF? This is not only because of the sheer authority of the book, but also because it includes its own summary or Overview on the first three pages.

This Overview fits nicely onto a single sheet of A4 in 12 point type, so can be used as the basis of a leaflet. (See the four attachments.) Even if they don’t buy the book, but merely read the Overview, MP s might begin to understand why the UK (and much of the rest of the world) is facing problems in the economy.

So I have begun a programme of sending such a leaflet, with an accompanying letter, to all our MP s. I have done 240 so far, just another 400 to go.

Everyone can help by writing to their own MP, including a copy of one of these leaflets should they so choose. At the PM conference, Josh Ryan-Collins talked about the book and made the offer of sending a free copy to any MP who was interested. You might like to extend this offer, but my own view is that if any MP really is interested, then they won’t begrudge the £15, whilst any who is not won’t even read a free copy.

Also, if anyone is feeling flush, they could help out this project by sending a few pounds, payable to ‘Money Reform Party’, to 34 Berkeley Close, Dunkirk, Faversham. ME13 9TR. For example, £36 will pay for a book of 100 second class stamps.

After the MP s, whom?

I had 1000 leaflets printed up, as the cost for 1000 was about the same as for 650, so I shall have 350 leaflets left over. To whom should I send these? What do you think?

I am thinking that they should go to economic journalists in our mainstream media, but other ideas would be welcomed (along with the stamps to enable the mail out).

The Positive Money conference

This was a good little event, well attended (uncomfortably so, given the setting), but we had some good speakers, putting across a range of viewpoints.

It was good to see two MP s there (Steve Baker and Michael Meacher), who pretty much confirmed my suspicion that the reason why politicians do nothing about our money system is not because they are involved in some conspiracy to cover it up, but because they simply don’t understand it. Hence the need for a campaign to start educating them.

Steve Baker came out as a gold bug. I don’t mind people advocating bullion as the basis of money, even though I don’t think that it will work. but they do have a tendency to conflate debt-based money with fiat money, when the two are quite distinct. Also, he kept referring to our present money as ‘irredeemable’. I am sorry that he is unable to redeem his money. Personally, I redeem money all the time – I redeem it in the supermarket for groceries, in the pub for beer, and so on. I could even redeem it for gold at a jewellers or bullion dealers, if I so choose.

That’s not the problem with our money supply! The problem is that it based on people being in debt, with overall debts having to grow year on year simply to avoid recession, unlike, of course, a positive, debt-free purely fiat currency.

The shadow of Weimar looms large

The problems in the Eurozone have loomed large over recent weeks and seem set to continue on into the future.

The solution that many Euro politicians want is one of greater fiscal integration, creating one body responsible for taxation and public spending throughout the zone. This will effectively create one sovereign entity called maybe Euroland or the United States of Europe or, by its opponents, the Fourth Reich.

Given the sheer dominance of Germany in such a fiscal union, I cannot see it happening, certainly not for those countries that suffered at the hands of the Third Reich.

Of course, such a union will not solve the Eurozone’s problems, but it would disguise them, just as in Britain we have been able to disguise the dominance of the City of London, which parasitically feeds off the rest of the country, by a small degree of taxation upon it to subsidise the rest of the country.

Nor will the ECB consider such a measure as Quantitative Easing, which has been applied in Britain and the USA, QE has not solved the economic problems in either the UK or the USA, nor will it, because its purpose is not to reduce debt, but to increase it. However, it has given the money markets confidence that UK and US debt will always be redeemed, so kept gilt yields (the price of Govt. borrowing) low.

QE will not be implemented by the ECB, because the ECB is based in Germany and is dominated by Germany, and Germany fears hyper-inflation more than anything else. Given the phenomenal levels of debt in the Eurozone, QE is no more likely to see an upsurge in borrowing and hence hyper-inflation in the Eurozone, than it has in the UK or the USA. Even so, the idea will not even be considered.

As for the creation of a debt-free money supply… that is beyond even non-consideration, if one can have such a place.

Britain must lead the way

Nor will the USA nor Japan lead the way towards debt-free money – the USA because there is too much resistance to government power, nor in Japan because, well, they have not sussed the solution yet, despite being 20 years ahead of us in their debt-crisis.

As ever it will fall to Britain to lead the world towards salvation from the troubles of its own making. All we need to do is get enough MP s to understand the cause of the present problems and then gently guide them towards a simple and sensible solution.

And we have to do this because, in the immortal words of Colour-Sergeant Bourne ( from the film Zulu ) ‘There’s no one else.’

And we now have the means, not in the shape of Martini-Henry rifles, but the wonderful new weapon called Where Does Money Come From?