Options for Banking Reform

Home » Blog » Options for Banking…

Jim MI read the paper and am not much the wiser for it. There is a lot of talk about how modern banking works and a small section at the end on sovereign money but no real comparison to full reserve. Having read Andy's books and now this paper it would appear that both are very similar systems with the m...

December 2016

PJMJim, the Sovereign Money proposal outlined in this paper is not a "full reserve" system. Rather, it is a "no reserve" system. Here is the URL for a paper by Prof. Joseph Huber, who is perhaps the world's leading expert on Sovereign Money, explaining the difference:http://www.sovereignmoney.e...Prof....

December 2016

Jim MAndy Anderson's books "currency" and "moving On" both go into this is good detail. They show how a full reserve currency in a state controlled bank could create full employment as it did in the past, before fractional banking and the tories took charge giving the banks free reign to print money....

December 2016
latest comments - view discussion

Gregory Schoenmakers@Simon Bazley, banks offer you a claim on their reserves when they loan you money.You might say this is an unstable system or even fraudulent since banks don't have sufficient reserves to pay out all of the claims but you can't call it "no consideration"....

September 2016

Simon BazleyHi James, A couple of points. I disagree that banks create anything. I believe that we, the people, create money. I think that banks actually launder the entire principal into their unwarranted possession when they issue a purported loan. I say purported as no loan actually ever transpires as w...

September 2016

James MurraySimon,You may know that any amount of 'consideration' is sufficient to form a contract.So that if I offer to sell my house to you for a bar of chocolate, then that is quite sufficient to be an enforceable contract. (provided it is writing, signed etc).The point is that the bank may 'create' funds by...

September 2016
latest comments - view discussion

Jonathan Peretz ChanceI'm familiar with economics, finance, banking and history.Unless a currency unit is publicly and scientifically defined (eg: one dollar = one ounce of silver, or one REC = one kWh of renewable energy production, or one Location Value Unit = Qualified Market Demand / One Volumetric Meter x Security R...

November 2016

Nigel WellsDear Jonathan, I suspect you have not really studied the difference between a countries currency issued as a debt (To private banks) and that issued debt free.The cosequences are several and drastic, See Banking 101....

November 2016

Jonathan Peretz ChanceThe differences between governments and corporations are rather superficial. How would "public banking" significantly change anything unless the currency unit is transparently defined as done with Silver Dollars, Renewable Energy Credits and Location Value Tax units?...

September 2016
latest comments - view discussion

Bank of England: Digital Cash – the end of monetary policy as we know it?

bank of england digital currency

Last week the Bank of England released a key paper that analyses the 'macroeconomics of central bank issued digital currencies'. The paper essentially asks what would happen if people could hold money electronically at the central bank, instead of having to use bank deposits (created by commercial banks). We wrote about it briefly last week but we're still working through the fine details of the 69-page mathematical model to figure out the implications for our work. In the meantime, the Bank of England's staff blog has just released a much more accessible discussion of the issues:

WilliamAnd...hard cash in the hand cannot be tracked so readily...

September 2016

WilliamEntirley true...but...'hard cash' in your hand cannot confiscated when convenient...

September 2016

Vince RichardsonOK I ve no objection to that,far as I am aware that is what we all want.It has to be open and honest so everyone can see what is going on and where and how that money is created.Well in simple terms anyhow...

July 2016
latest comments - view discussion

Our response to critics in the Cambridge Journal of Economics

Cambridge Journal Response

The Cambridge Journal of Economics (probably the leading journal of Post-Keynesian economics) has published an entire special issue on "Cranks and brave heretics: Rethinking money and banking after the Great Financial Crisis", inviting a range of academics to comment on proposals to stop banks creating money (amongst other ideas for monetary reform).

Graham BarnesThe PDF has been moved and the online access is no longer free....

last month

joebhedTom,You can investigate The Muscle Shoals Project : Ford and Edison for one of the clearest understandings of the dynamics of debt-based money coupled with compounding interest.The people, in their monetary economy, are paying interest on every dollar that was ever created to support the national ex...

December 2016

joebhedTom,Yes, you are right, and I think that Positive Money has consistentlypointed this out over the years, being confirmed by the Bank of England’s April 2014 report on the subject of money creation in modern monetary economies.I am also in the US. And in both cases / countries, a restoration of the...

December 2016
latest comments - view discussion

No Announcement posts

back to top