Category Archives: Credit Creation

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

Advertisements

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!