By Simon Dixon “Author Of ‘Bank To The Future: P… Modernising Money is long overdue and needs to be compulsory reading for economics students around the world. How this important issue has been missed by mainstream economists and has been allowed to get this far is beyond me.
I for one cannot wait to see where this book can go and I look forward to seeing a banking world that follows these reforms.
Well done and a great achievement to have written this book.
Compulsory reading for those interested in solving the mess we call a banking crisis today.
For responsible citizenship, 1 April 2013
By Michael M A thought-provoking book that requires a certain intellectual effort to follow but well worth that effort. This should be standard reading for anyone who considers himself or herself to be a responsible citizen.
The solution that we are all looking for, 3 Mar 2013
By Simon Thorpe How many times do you hear that the government is massively in debt, and that there are only two options – either (a) increase taxes, or (b) cut government spending?This story, which is repeated endlessly by policitians, economists and journalists is a fiction. And Andrew Jackson and Ben Dyson’s excellent book explains why. The real problem is that governments have handed the power to create the nation’s money supply to the commercial banking system. And those banks are responsible for creating 97% of the money in the UK system. They create that money “out of thin air” when they make loans. And then they charge everyone – individuals, businesses and governments – interest on those loans.My own calculations back up the claims made both in Modernising Money, and in the Positive Money groups’s previous book “Where does money come from?” (also highly recommended).Show More...
Everyone, but everyone, should read this book. If you hear a politician, economist or jouralist saying that tax rises and cuts in public spending are the only options, you can tell them that they are completely wrong.
Should be required reading for economists, politicians, journalists and activists, 28 Feb 2013
By loulouB This book should be required reading for anyone responsible for managing our economy (Treasury and Bank of England Officials, politicians, MPs), ‘opinion formers’ commenting on our economy (journalists), independent financial advisors and anyone teaching economics, finance or political science to anyone at any level. It should also be read by anyone working in the banking industry so that they realise that the sleeping masses – may not sleep forever. The book addresses complex issues (where money comes from, who controls the money supply and who wins and loses in the current system)intelligently. The writing is as simple as it is possible for it to be, and makes excellent use of clear examples. It is well referenced and presents an objective analysis of publically available information, and resists the temptation to make accusations of mismanagement (or worse. Show More...
Modernising Money, 28 Feb 2013
By James Bruges Everyone knows that something is profoundly wrong in our (UK) society: welfare benefits withdrawn, a whole generation unable to buy a home, a fearful outlook for energy, trains being the most expensive in the developed world. Though government debt is bad enough, it is dwarfed by household debt that has reached the equivalent of ten years’ worth of income tax revenue. And people blame politicians.
This book shows how the problems lie deeper than this or that policy, being caused by a faulty money system ensuring that any economic growth is accompanied by yet more debt. It is not party-political. It shows how both government and personal debt can be drastically reduced, how welfare and infrastructure can be afforded, how inflation can be avoided and how sterling can become the most stable currency in the world. It is written in thorough detail both for economists and lay people. I am left with a feeling of hope. And it is a MUST read for all decision makers.
Completely engrossing, a little bit scary and massively thought provoking, 8 Feb 2013
By Mr. Paul Daly (Glasgow, UK)
The book is easily accessible for people with different levels of financial knowledge, but what you read you may not always like!! The authors do, however, present a viable alternative to our banking system which would help us move away from the current boom/bust cycle and stop the general public being susceptible to bursting of financial bubbles.Once you get your head around it, it really makes sense.
Today’s money: A winning system … but for whom?, 31 Jan 2013
By Elmarie Constance So, dear reader, do you want to know why we are all plagued with personal money worries and constantly struggling with debt and interest payments and good businesses can’t get loans while the powers-that-be are obsessed with economic growth? How can it be that we seem to be able to afford an elite high-speed rail line at £4,000,000,000 (before time and cost overruns) but can’t find £40,000 to keep the existing local library open?What’s going on? Do you sense that something is drastically wrong but you don’t know quite what or why? Show More...
Why today’s economies are disasters waiting to happen continually, 31 Jan 2013
By Robin Constance Why is money so important in our lives? Well, it underpins pretty much everything we do and everything we are! However we feel about it, whatever we think about it, money is crucial to our everyday living and being. While it should be a faithful servant that works for us – after all, that’s why we invented it – money is being used more and more as a control-weapon to exploit and abuse us. So where does it come from? How is it created? And very important, who benefits the most from it?
Let me start at a beginning: what is a bank? A bank is a business that deals in money and provides other financial services. We use them mostly for their current and savings accounts. But these services are free, so where is their profit? The answer lies in what banks sell – their product: banks sell debt. So business as usual for a bank is finding as many ways as possible of getting as many people as possible into as much debt as possible! The real business of banks as they exist today is to sell debt. Got it?And where do the banks get their product from; this money that they lend? From nothing, for nothing … through an exercise in plain sight of sleight-of-hand digital accounting deceits! And here’s the kicker: It is this type of money – out of thin air, keyboard-created, kiss-my-pixel, virtual-stuff – that now makes up 97.4 per cent of all money used in the economy (from Where Does Money Come From?: A Guide to the UK Monetary & Banking System ). Having created their own base product – brand spanking `never-existed-before-now’ money – they proceed to lend it to us for interest; not just simple interest mind you, but interest-on-interest. What we call compound interest.We all know what rent is … payment in exchange for usage. We live in a rent-an-economy; we pay the banks to use the economy that they create ex nihilo i.e. for diddly-squat, own and control. In short, their economy. We hire their economy from them! In effect then, the non-bank sector must `rent’ the entire money supply from banks, resulting in a constant transfer of wealth from the rest of the economy to the banking sector (through interest payments). No wonder bonuses are, er, on the high side.To put this into actual money numbers, in 2011 the Bank of England calculated that banks earned just under £109 billion in interest a year. Before the Bank of England lowered interest rates in 2008, banks earned just over £213 billion in interest payments alone. This is money that is transferred from the honest and productive non-bank to the suck-my-screen banking sector. Bear in mind that this is a charge for something that could be provided at almost no cost by the state, that is to say the government as voted in by you and me.Let me offer you two further little horrors from Modernising Money: 85% of the British public’s money is held by just 5 banks; and, in the 5 years running up to the financial crisis, the banking sector’s gross lending to households and individuals alone came to a total of £2.9tr whilst total government spending was less at £2.1tr.Banks aren’t `too-big-to-fail’. As things stand at the moment, they are `too-essential-to-be-allowed-to-fail’. So who rules, who are the masters of the universe … our political representatives in Westminster or the unaccountable banksters of the City? That’s a nobrainer: moneypower rules, okay!Why do banks do this? Just the usual ol’ human-nature stuff; you know: profit, power, prestige.And how do they get away with this? Because we the voters in our ignorance allow them to!
What, then, is the root of the problem? Very simple: We, you and I, have given away the power to create money to private interests. Through our nescience – our not-knowing – we have supported their power to create money out of thin air for their own exclusive, short-term profit … which is in direct conflict with our best interests and well-being!How can we change this? Very, very easily. If – IF – the political will is there, the necessary legal and technical measures will be a toddle. But let’s be quite clear: supplying a nation with its money must be completely separate from the activity of banking. So, in effect, under the reforms of Modernising Money, neither the state (government) nor a bank could borrow a single penny. Monstrous – mountainous – UK debt will have peaked.And you and me? What about us? We would be able to borrow as usual. Because our financial position would be much improved, we’d probably have less of a need to take on debt. When we did, with real competition, the rates would likely be considerably lower.So, dear reader, do you want to know why we are all plagued with personal money worries and constantly struggling with debt and interest payments and good businesses can’t get loans while the powers-that-be are obsessed with economic growth? How can it be that we seem to be able to afford an elite high-speed rail line at £4,000,000,000 (before time and cost overruns) but can’t find £40,000 to keep the existing local library open?What’s going on? Do you sense that something is drastically wrong but you don’t know quite what or why?If you lack knowledge, want explanations and need to understand, I strongly urge you to absorb Modernising Money. You won’t need to borrow for this one. You, as ever, supply the interest but this time you owe it to yourself.”
A real eye opener., 31 Jan 2013
By C. R. Todhunter “Christod” (London)
It is a terrific read and seems very thorough. Would be a good crash course on banking for a student even if they never went as far as the second half. As a lay person it was just at the limit of my understanding which is just as it should be.
A couple of comments:
How would a big international bank based in say America run it’s operation with such a different system in place?
It would have been good to include a survey of similar literature or at least refer to it.I am thinking of ‘New money for a new world’ by Bernard Lietaer et al, which is another book I have great respect for. Also .[…]. It should be helpful to be pulling in the same direction!
Congratulations for your great achievements in 2012. May 2013 be even better.
A real opportunity for change, 31 Jan 2013
By Bernard Modernising Money is a thoroughly researched and very timely investigation into the way money is created, managed and circulated by our commercial banks. Unlike many analyses of what is wrong with the current system however, it also offers very well thought through and workable solutions. As the Governor of the Bank of England is quoted as saying in October 2010 (quoted in the introduction) “Of all the many ways of organising banking, the worst is the one we have today.”To know what needs to change in our current system requires us to understand how it is operating today. Since the world of finance is highly complex and seemingly beyond the grasp of ordinary mortals this is no easy task. But, as this book demonstrates every detail of the way money is created and circulated can be easily understood. This book explains in simple language how money is created and who controls it. Show More...
Reduce the burden of personal, household and government debt.
Encourage investment in the real (non-financial) economy.
Re-align risk and reward.
Provide a structure of banking that allows banks to fail.To achieve these aims some simple reforms are proposed that can be implemented without starting completely from scratch. These are described in a step by step and easily understandable way. For example a major problem occurs when those who create the money also determine its use or when those who should be brokers have an interest in the money itself. It is vitally important that these functions are separated. After the reform the Bank of England becomes the organ that creates money(not just cash as at present but electronic money too). The commercial banks then lend out money that has been created elsewhere. This keeps the activity of money creation and loan arranging clearly distinct. In practical terms this means that individuals will have direct access to debt and risk free money via Bank of England accounts. If they can then also open investment accounts with commercial banks and have a share in the risks and benefits.Each of the clearly defined objectives are addressed in turn down to the smallest detail. Given the political will the whole reform could be easily and immediately implemented.As well as offering real solutions to current problems this book promises to be an important and easy to read textbook on economics that deserves to become a key resource work for all students of economy.
time for change, 31 Jan 2013
By pedro A most interesting read ; a book I have been waiting for as a follow up to the previous book “Where Does Money Come From?” which explained how commercial banks control the money supply.This book goes the whole hog and provides a worked out solution; but not one set in stone.
It reviews the current UK monetary system explaining what is wrong with the current role commercial banks play in UK economic system through to what needs to be done to correct the short comings and how to make the transition .It is a book which deals in outline and in depth ; so it is easy to grasp the outline and with some worthwhile effort to understand the details; even for non economists like me. It deals with every day operation of a commercial bank as well as how they interact with the Bank of England and other banks; and the services that the Bank of England provides to the commercial banks .It is a must read for anybody interested in the UK’s current economic state and of course anybody involved in commercial banks , the Bank of England and Governments Treasury and MPs of all shades of economic thinking and but not least, the members of “The Independent Commission on Banking” to shake up their thinking and understanding!
Joel Kemp, Director of LKWD Lockwood Publishing, Playmetrix and Avakin at Lockwood Publishing Ltd, Nottingham, United Kingdom
As a business owner I would like to see money creation taken out of the hands of private banks and democratic system installed for money creation. We see recession on the high street whilst a boom in the stock market created by the increase of fiat currency created and pumped into the finance industry backed by the tax payer. Ben Dyson and his team have created an excellent book which explains the issues with a debt based fiat currency and how they can be easily solved. A must read.
Robin Brownsell, Director at Tusmor, Brighton, United Kingdom
Tusmor Ltd. and its partners are building capacity for new banks to enter the UK market .We have spent considerable time and effort understanding what went wrong and the areas that could be fixed. “Modernising Money ” is one of a number of resources we have looked at that examines a better way. It is an essential reference book for understanding what socially useful banking could be and I would thoroughly recommend it to everyone .