News

May 2017 Positive Money New Zealand issued a press release seeking clarity from the Reserve Bank on how our money is created.  They still refer to intermediation by the banks, which is not how our banking system works.

5th November 2016 An article in The Guardian newspaper in England argued that abolishing debt-based currency holds the secret to getting our system off its addiction to growth.

5th September 2016 KPMG released a report, commissioned by the Prime Minister of Iceland, titled "Money Issuance" The report looked at money created by the Government.

28 March 2016 Bryan Gould has agreed to be the Patron for Positive Money New Zealand.

Bryan is a respected commentator on economic matters, an author, academic and Companion of the New Zealand Order of Merit.

31 October 2015 A monetary reform group in Switzerland has enough signatures for a referendum on who creates their money supply.

14 October 2015 The Finance Commission of the Dutch parliament discussed monetary reform.

31 March 2015. The Telegraph in London reports on the Icelandic governments plan to have their central bank issue their money supply and calls it a radical plan.

22 November. The British parliament debated money creation last week, for the first time in 170 years. There was cross-party support for a proposal to set up a monetary commission

23 September. A new generation of young people, dubbed ''property orphans'' may be destined to be renters for life.

17 September. The Bank of International Settlements (BIS), the bank used by central banks, confirmed New Zealand houses are among the most "unaffordable" in the world compared to people's incomes.

6 September. Bruce Bisset of Hawkes Bay today reveals the true story behind the so called Rock Star economy.

25th April 2014 "Strip private banks of their power to create money”: says the Financial Times’ chief economics commentator Martin Wolf, who endorses Positive Money’s proposals for reform

15th March 2014 - In a historic move The Bank of England quarterly bulletin explains how money is created. Whenever a bank makes a loan, it creates a deposit in the borrower’s bank account, thereby creating new money. The bank says that this differs from the story found in some economics textbooks.

16th August 2013. The retiring head of the Financial Markets Authority apologised for the mistakes made saying “You were let down”.

 

The Earl of Caithness“… our whole monetary system is dishonest, as it is debt-based… We did not vote for it. It grew upon us gradually but markedly since 1971 when the commodity-based system was abandoned.”

The Earl of Caithness, in a speech to the House of Lords, 1997.

An Honest Discussion

Marc Joseph

Needless to say, the economy is always a hot topic in the media. Economists enjoy the last word in the debate and we have to wonder why given how frequently wrong they are. Their oft-used phrase "but on the other hand" confirms the speculative nature of their opinions. But there is an element of dishonesty in all this talk about money. We never hear about where money comes from in the first place. It is always studiously omitted from the conversation. But as money reformers know, this is the single most crucial aspect affecting the economy: the fact that money is loaned into existence by the private banks, thereby putting the borrower in debt servitude.

So let's imagine an honest discussion about the economy, one where the basic facts of money creation are included. When asked, say, "How can we achieve affordable housing?", the economist would answer: "The government could easily fund the construction of affordable housing by spending new money for this purpose. The authority to create money comes from government so there is no need for the government to look anywhere else for funding other than from itself. This would not incur any debt and it would go a long way towards ending homelessness. We did it in 1936 to alleviate the housing shortage back then and it created thousands of jobs."

Or, "So many people are struggling to make ends meet. What can be done?" The reply would be: "In this system people need money to participate in the economy. A simple solution to financial insecurity would be a minimum income provided to everyone by the government so that people can live their lives with financial dignity. Most importantly, the government should stop the private banks from creating money as interest-bearing debt. They are the direct cause of the onerous levels of debt in society."

That would be refreshing. Instead, we get a rather useless analysis of the economy that regurgitates the same tired platitudes that are wholly unenlightening. An honest discussion of the economy must include the realities of debt-based money creation. Let's work to get this honesty into the mainstream media.

Change money, change the world!

 

 

 

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