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”.

 

Henry Ford“It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.”

Henry Ford, founder of the Ford Motor Company.

Debt and the Money Supply

Marc Joseph


It's obvious that the onerous levels of debt that people and their governments are burdened with has a very restrictive effect on what we want to do or achieve in life. Society is constantly petitioning the government to do something about the many ills that plague us, like poverty, homelessness, and inequality, but the government's efforts are feeble at best. We've all heard their litany of excuses that all boil down to this one: "we don't have the money", and they like to point at the national debt and they warn against going into deficit. Let's have a revealing look at the national debt in relation to our money supply.

It's reported that total debt in New Zealand, public and private, is now at the incredible amount of half a trillion dollars owed. Yet the Reserve Bank's monetary statistics say there's about $320 billion  in the money supply. How can this be? That is a shortfall of some $180b giving a debt to money supply ratio of 1.7 . In Canada the situation is similar with a $1 trillion shortfall and a 1.5 ratio. There's not enough money to pay the debts owed and given that interest charges add to the debt over time, it's apparent the debt cannot and will not ever be paid off.

Even worse is the global situation. Recently it's been reported that the global debt threat stands at $212 trillion. However the global money supply is estimated at under $100tr. To whom is all this money owed? The situation is preposterous. Debts that can't be paid, won't be paid. Why should we continue to endure this insanity? It's clear that private control of the money supply is designed to keep us in a state of debt bondage, stifling human potential and perpetuating inequality.

Things could be completely different. Let's do what we can to make money reform an idea whose time has come. Change money, change the world.

 

 

 

 

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