Former Business Secretary Vince Cable was famously one of the only senior parliamentarians to predict the last financial crisis. And he’s sounding the alarm bells again.
Setting out to break some of the deeply entrenched taboos pervading economics in Britain, David Graeber has written an excellent piece on why he believes that we are heading for another 2008 crash. While we do not agree with all the points raised in Graeber’s article, it does a great job of highlighting how fiscal policy can lead to dangerous levels of private debt and thus financial instability. Yet, fiscal policy, regardless of what political guise it takes, needs to be complemented by appropriate monetary policy – one which includes Sovereign Money Creation (a form of People’s QE) in its policy toolkit.
Here's an English translation of an article by our supporter in Greece, financial analyst Jason Ghionis, published in the Efsyn newspaper on 17th September. With the following article you will familiarize yourselves quickly and in absence of technical terminology with new economic theory. It includes basic arguments why borrowing, interest and older systems such as linking currency to gold were and are problematic. Finally, it examines a currency issuance mechanism by an independent, state authority in accordance with Positive Money's proposal and suggests adaptations that are in line with Greek reality.
In this Keiser Report, Max Keiser interviews Fran Boait, Director of Positive Money about Osborne’s ‘fiscal charter,’ the rise of inequality and its causes.
What did you feel when you understood the full implications of the fact that banks create money out of nothing?