Unparalleled levels of imprudent lending; corrupt banking practices; soaring inflation and rising unemployment; government bank bailouts and an economy dependent on increasing levels of debt to sustain growth. Sound familiar? It would have done to Britons in the 1830s. The fact is that we have been in a remarkably similar economic crisis before and the reasons for it could be almost identical, according to The Independent, 12th July 2012.
In addition to the recent article in the Guardian, Positive Money was mentioned in another mainstream newspaper.
Here is a short extract:
The problem, essentially, is the same as in the 1830s. Back then the banks had the power to create paper money, now they have the power to create electronic money. The problem is that legislation hasn’t kept up with technology.
Surely then the solution is simple – create new legislation updating the Bank Charter Act of 1844 to cover electronic money. Take the power of money creation out of the hands of private banks and put it back into the hands of the Bank of England.
This is exactly what groups like Positive Money and Money That Works are now campaigning for. They are calling for the government to take back the power from the City and enact similar legislation to the Bank Charter Act. They want the Bank of England to have the sole power to create any form of money, be it physical or digital.