Abolishing debt-based currency isn’t a new idea, but it could hold the secret to ending our economies’ environmentally damaging addiction to growth, reads an excellent article in the Guardian, 5th Nov 2016. *
Positive Money Newham had a wonderful afternoon at the Redbridge Green Fair on Sunday 29th May. It was a great opportunity to engage directly with a diverse, local community of people who were very receptive to our message - namely that a change in the monetary system is fundamental if we are to restore fairness and stability to our economy and free ourselves from an excessive reliance on debt.
In the previous blog posts we discussed why a new financial system is needed and what the alternative, a system in which the state is responsible for money creation, would look like. Also, the different ways were reviewed in which the newly created money is to be channelled into the economy. Distinction was made between expenditures by the state and those by business and citizens. To what extent, that is to say, in what proportions that happens is a political decision that stands apart from the issue of monetary creation. In other words, how to spend the benefits of public money creation is a political choice.
Positive Money supporters have been attending hustings events up and down the country to question their candidates on money creation. Here, Kirsten de Keyser from Camden local group of Positive Money supporters shares her experience. Read our top tips for attending a hustings here.
Under the current monetary system customer deposits provide banks with a cheap source of central bank reserves, which are required to make the payments to other banks that may result from the issuing of loans. (Banks acquire central bank reserves (base money) when payments are made to their customers’ bank accounts.) However, despite helping to fund the loans, depositors have no say and little idea over the use of ‘their’ money. They may therefore be unwittingly helping to fund activities that they disagree with.