The highlighting in the mainstream media of the problems with money creation by private banks continues!
1. In the news:
a) The Financial Times published an article that describes money creation and destruction by the commercial banks and how little control the central banks have in the process:
“…much as they might like to think they are in charge, it isn’t really the central bank in a country that creates the money – it is the commercial banks.”
It also correctly explains the single most important factor behind the financial crisis: “every time the commercial banks expand their lending they increase the supply of money in the economy. And every time they contract lending they reduce it.”
Read the whole article here (you need to register to read FT; a small number of articles can be read each month for free)
Comments like this were unthinkable in any newspaper just a couple of years ago, so it’s exciting to see reality described so accurately by one of the world’s leading financial newspapers.
b) The Independent comes with the analysis: Why Exactly Is it So Expensive for us to Own a Home? and it also mentions Positive Money:
The campaign group for banking and monetary reform, Positive Money, believe that it is the debt-based nature of our economy which has caused such huge increases.
…it is the banks’ ability to create digital money when they make new loans that has driven the rise in house prices and fueled the most recent and catastrophic housing bubble. This is because most of the banks’ lending – and hence most newly created money – goes into the housing market in the form of mortgage lending.
c) And also the most prestigious newspaper in Ireland “The Irish Times” writes that “privately-owned banks create and destroy money at will”:
‘When you extend to bankers the power to create money ex nihilo, you can hardly be surprised if they start to believe themselves superhuman’
2. Positive Money Conference – Saturday 26th Jan 2013
The next Positive Money conference is planned for 26th January. Please hold the date in your calendar.
3. Upcoming Events
A few interesting events are planned over next weeks:
a) “Banking reform or Abolition of Capitalism?” (Central London) – Wed 5th September
If you are in London next week on Wednesday, don’t miss the debate between Positive Money and Socialist Party of Great Britain. SPGB disagrees with our analysis and our proposals to reform the money system to deal with our economic ills. They say that “capitalism is the cause of the problems wage and salary workers face and must go if these are to be solved.” Can we fix money and banking, or do we just need to get rid of money altogether? It should be an interesting discussion!
We’ll be filming it and will have the video on Youtube shortly afterwards.
b) “97% Owned” Screening – Portsmouth, Tue 11th September 2012
c) Why the Financial Crisis? (And what to do about it) – Edinburgh, Thu 20th September 2012
d) Ragged Talks: Why the Financial Crisis and Starting a Technology Business –Edinburgh, Thu 11th October 2012