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 banks do create money. They have been doing it for a long time, but they didn’t realise it, and they did not admit it. Very few did. You will find it in all sorts of documents, financial textbooks, etc. But in the intervening years, and we must be perfectly frank about these things, there has been a development of thought, until today I doubt very much whether you would get many prominent bankers to attempt to deny that banks create it.”

H W White, Chairman of the Associated Banks of New Zealand, to the New Zealand Monetary Commission, 1955.

Our Nation's Money

Marc Joseph


The situation around money is quite exceptional. The public's perception of where our nation's money comes from, believing it comes from the government, is wrong. Yes a tiny part, the cash part, comes from government but that portion, about 3%, is insignificant. All the digital money we use is created by the private banks. It's our national money, yet private actors have been given the power of producing it for our economy. Think of it. The New Zealand dollars we all must have to participate in the economy are supplied by private banks who decide who gets how much and who doesn't. Is that democratic?

Let's look a little further. That money, our nation's money, is issued to us as a debt that we must repay. In other words, we may as well call it our nation's debt. Our money is debt, but why is that debt owed to private entities who produce it "out of thin air" by tapping a keyboard? And this debt has interest attached, which means that the debt grows over time, increasing beyond the capacity of the people to repay it. Indeed, the total debt owed to the private banks today is far greater than the total money supply. The debt cannot and will not ever be repayed. So we work to repay the unrepayable debt to private actors who have done virtually nothing. How can this be?

The reason is that people just don't know. Somehow, we've been indoctrinated to never question the source of money. The result is everwhere evident: inequality, poverty, homelessness, environmental degradation, crisis. Our challenge is to dispel the erroneous thinking around money. If society knew the truth, the private control of our money would end. The people would demand that the government assume control over our money supply and soon the financial solution to our myriad problems would be available. No more debt.

We need money. We don't need debt. Debt distorts the economy. It makes it run inefficiently, squanders natural resources, spawns a rat race that wastes human potential, and greatly enriches a few at the expense of the many. It's clear that society would reject private production of our money given that everyone deplores the inequities that are the result. So tell your friends. Recommend this blog and the Positive Money website. Let's work to end private control of our nation's money.

Change money, change the world.

 

 

 

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