This is worth watching! Excellent TEDx talk on why changing the rules of banking is so important:
There are two rules that govern our economy:
1) In order to have more money, we have to have more debt
2) If we want less debt, we have to have less money
This is why our economists, central bankers and politicians can’t figure out whether they want people to take on more debt or they want a recession. Because that’s the only choice when we allow banks to create money as debt.
The reason we have booms and busts: Economists have tried to create all sorts of crazy econometric models that make no sense to anybody, but the reality is – the instability is simply this:
In boom we get everyone to take on debt. When everyone take on debt, they spend it and the economy goes flying.
Eventually, they can’t afford it. When they go bankrupt, banks stop lending, the economy crashes.
And that’s simply because the only way to get more money into the economy is to get banks to lend more.
We will never go out of this boom and bust cycle until we look at the very foundation of money.