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

www.klagemauer.tv [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!