VIDEO: Reforming the Monetary System

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Positive Money Founder, Ben Dyson, presenting at the 3rd annual Positive Money Conference “Modernising Money” on 26th January 2013 in London, explains the main principles behind the monetary reform proposals which offer one of the few hopes of escaping from our current dysfunctional monetary system:

“Our problems are man-made, therefore they can be solved by man. No problem of human destiny is beyond human beings.”

John F Kennedy

Screen Shot 2013-01-31 at 15.11.08The book ‘Modernising Money’, mentioned in the talk, explains why the current monetary system is broken, and describes, in more detail than ever before, exactly how it can be fixed.

Detailed, but accessible to non-economists, Modernising Money is written for anybody who wants to know how to create an economy that serves people, businesses, society and the environment.

Written by: Positive Money’s Andrew Jackson & Ben Dyson

Foreword by Prof Herman Daly, Professor Emeritus School of Public Policy University of Maryland, Former Senior Economist at the World Bank

Download FREE PREVIEW (contains Foreword, Summary of key points, Full introduction & First page of each chapter).


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  • dollypentreath

    What you don’t point out is that the money is not created ‘out of thin air’. Nor does circulatory inflation cause price inflation. Money is created by our promise to pay for the debt. We guarantee money with our labour. The banks take that guarantee and create their money (which is in fact a secondary publication of our original promise to pay). They then ‘pretend’ to lend it to us, thus laundering not only interest into their possession but also the PRINCIPLE which they did not create. Banks do not give up lawful consideration i.e. they do not add anything of value in this process apart from the cost of putting the numbers into the computer system and a bit of admin cost. What we need is a system of money which, via a non-profit accounting system owned by the people of the nation, gives the people the right to create their own promissory obligations, free from interest and free from manipulation. We can simply create these obligations and then pay for them over time by the following means: as the asset which we purchased with our obligation depreciates, we simply cancel from circulation the amount that relates to the value of that depreciation. i.e. a house we buy for £100k of money we created would cost approx. £83 per month (as opposed to probably £800 per month under the present system, depending on the type of mortgage we may have) We do not need to pay it back to anyone nor pay interest as we HAVE NOT BORROWED it. This would mean a cost of about one twelfth that which we presently pay on a debt. It would mean that everyone would easily be about to afford a home, there would be no unemployment and there would be a truly free market economy which would boom. It would boom in an environmentally advantageous way TOO as the longer a manufactured item lasts, the more attractive it would be for buyers who need to create money to buy that item (due to the principle of paying for all promissory obligations as the asset we purchased depreciates, i.e. longer lifespan=smaller payments over much greater timespan). This means that all money created would equal the value of all remaining assets and the amount of obligations existing at any one time. Therefore: a 1:1:1 ratio between value and money circulating. There would be no need EVER to borrow money. Money would never be used as a commodity in itself (not because it would be illegal, but who in their right mind would borrow money at interest when they would have the right to create their own??!) Think about it! It is the only solution to giving freedom to all people to trade and do business, as and when they liked, within a stable value system: no inflation and no deflation. There would be no need for intervention in any of our trade, no price fixing, in fact, hardly any government would be required at all as people themselves would be able to manage quite nicely, thank you, with all the systems they need to have a stable, beneficent, equitable and caring society. If you would like to find out more, please contact me. I would like to explain this system to you although I am sure that you have heard of MPE? Thanks and I hope we can all join together in calling for the best possible reform to the monetary system that we can have. After all, the people of this world deserve it and it is long overdue!

    • jimmy

      why would you work if you could create your own money?

      • Andrea Fabbri

        Because you’ve got an obligation and you promised to create the countervalue of the currency issued by you (your work)

  • nicholson

    Ben Dyson – Performs a useful function – disseminating information about complex and powerful systems in dynamic and understandable ways. The current situations needs precisely this kind of ‘airing’ in the public domain. He’s crossing interesting fault lines. The perspective of reality from a new generation, co-research on our financial institutions, making connections between democracy and finance.

    He’s effectively contributing to the opposition to the free market ideology by representing the relationships between debt and power. By doing this he’s bring in through the back door a discourse about democracy and therefore society which until now has simply failed to ignite largely because it was lost in much of the rhetoric of the old left and any attempts to do so always raised the old fears of saying anything that sounded ‘leftwing’.

    Dyson firmly asserts a reformist centre left perspective which is based on a reasonable, sound and easily understood articulation which has an ability to resound sense for everybody.

    By focusing on the pragmatic, the need to fix, his discourse exposes the extent the current political ideology holds power over the financial system over and above an emphasis on a system based on functional, stable and productive modes of operation.

    It’s a great starting point for reinvigorating the complex debate about what society is, who it’s for and what it does to it’s inhabitants. A discourse that was lost with the arrival of Thatcher back in 1979.

    I wish him good luck.

  • Mr Christopher Kelly

    How do you change a corrupt Banking System that has been manipulated by the great and good of our Society without a massive shift of The way this Country is Governed, at the moment the Polititions are not listening to you! What you are proposing makes sense to me but I doubt the changes you desire will not happen unless your Group form a new Political Party and let the Public hear the Truth about Banking Reforms.

  • Marcel Bakker

    Every medium of exchange will cause lack of it as people are different,
    experiences more difficulties or advantages then others. As real cost
    prices can only be estimated before investments are done for people,
    companies, governments and banks we will 100% know for sure that a lot of people
    will underestimate risks, run short, have debts, go for loans. If making
    money yourself is prohibited we are sure we get into a debt based
    economy again. So in the long run there’s only 1 option to avoid capital
    destruction and real property destruction: LEAVE MONEY!! Go for a WORLD
    WITHOUT MONEY! Give, share, don’t demand (groups of) others to give
    more than you gave them by charging interest… O yes, let’s make it
    happen before World War 3

  • Margot

    Ben and crew – I totally support your recommendations but I think there is one factor that is missing in your presentations. What happens to the current debt if your system is implemented. If this debt remains as liabilities of the banks, then when we are paying them back with real economy money, this money will be benefitting the banks. Only two things can avoid this – transferring the debt to the body that creates the money (bank of England in your case) or to cancel all debt.

    I prefer the latter, with an appropriate re-adjustment of house prices so that everyone can afford them sooner, rather than waiting for the effects of this system to adjust the prices. This can only be done if all debt is cancelled because so many people have loans based on an overinflated value of their homes. Additionally, repossessed houses should be redistributed to those who lost their homes in the crisis.
    And thanks for another great presentation, I always enjoy listening to them.

  • Public Banking Ireland

    In response to the last two comments I agree with both views. Positive money is doing an excellent job in promoting and disseminating the concept/reality of a sustainable and counter cyclical use of public funds to promote prosperity. In simple terms when private banking charges interest it goes back to private bankers, when public funds are used via a public bank the interest goes back to be used within the real economy. The one example of this in the US is the Bank of North Dakota where it’s governance prohibits it engaging in shadow banking ie gambling on the derivative markets. In respect of promoting within the political arena that in itself is another battle because politicians are too close to the private banksters. An example of someone taking on the system that is currently taking place is in the US via Ellen Brown (Public Banking Institute) who has stepped into the political arena on the Green Party ticket as treasurer of the state of California at the next elections. I believe, in time, that through the good work of people such as Positive Money will inspire people to take that step. Here in Ireland there are similar moves to take this step to take back control of our prosperity. One of the options being looked at is to use the rules of the Lisbon Treaty 123 which allows money to be raised by a public credit institute from the ECB.PS interesting to note that when the Bank of England was being set up in 1684 that an Irish philosopher was calling for public banking in Ireland, guess he didn’t like what was happening in London

  • George Durkin

    A quick question…when a mortgage loan is created the money is created from your signature on the agreement? From there “money” is created and in turned a Prommisory Note is created and then this negotiable instrument is securitized and sold to investors? In the terms and conditions of the mortgage agreement the lender assumes, irrevocable power of attourney to issue documents in your name. The lender gets the profits from this sale? Because this note has been sold off the back of your signiture does that make you the creditor? Is the lender commiting fraud? Thanks

  • P_a_u_l

    While I do believe this represents a major part of the “solution” – what is being presented is the total destruction of capitalism as we know it. As soon as you bring in some entity which decides how sovereign money is spent, the entrenched powerfulpolitical forces will crush the movement. It is not just a technical economic change, it directly threatens the powerful.

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