Debt-Based Money vs. Sovereign Money (Infographic)

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Debt-Based Money vs. Sovereign Money

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  • slipperychimp

    Please can you explain the logic which leads to your statement:

    “Because banks create money when they make loans, for every
    pound in your bank account someone else must have a pound of debt.”

    Due to fractional reserve banking, my deposit allows someone to borrow from the bank more than I have deposited (I have no debt). It doesn’t mean someone else MUST be in debt equal to the amount I am in the positive.

    I’m about as far from an economist as you can get, so I could be wrong, but wouldn’t your statement only apply to a closed (no money going abroad, no money creation etc. ) 100% reserve banking system?

  • Ubiquitous

    Guys… maybe I haven’t looked in the right place, but what would be very useful, would be Twitter cards that we can use – simpler versions of the Positive Money manifesto…

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