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”.

 

“Banks lend by creating credit. They create the means of payment out of nothing. ”

Ralph M Hawtry, former Secretary to the British Treasury.

 

Financial Fearmongering

Marc Joseph

The present debt-based financial system has no shortage of apologists. But when confronted with the facts of the private production of debt-money, they're left in an unfortunate position: they haven't got a leg to stand on. Their only refuge is financial fearmongering, declaring that public finance would be "inflationary". What are they talking about? Let's have a closer look.

When decrying government production of money in the public interest, the fearmongers invoke the spectre of inflation, i.e. rising prices. But is this such a bad thing? It can be argued that society is addicted to price inflation. Who doesn't enjoy watching the selling price of their home go up far above what they paid for it? This inflation is welcomed, and not just by the homeowner. The private banks, who fuel the inflation with their debt-money produced "out of thin air" for larger and larger mortgages, love the increased numbers in their debt portfolios, as do their shareholders who want price inflation of the bank's stock.

The financial fearmongers rarely make the crucial connection between inflation and interest-bearing debt-money. Indeed, interest on debt-money is the primary cause of inflation. In her book, "Interest and Inflation Free Money, Creating an Exchange Medium that Works for Everybody and Protects the Earth (1987), Margrit Kennedy calculated that 40% of a price is due to interest. Imagine that. And yet we have professional economists warning us against inflation while defending the very system that produces it. In the last hundred years, privately produced debt-money has lost over 95% of its purchasing power, a damning fact if ever there was one.

The fearmongers can only get away with this nonsense because of public ignorance about where money comes from. If the public knew the truth about private banking and the brutal effects of all this debt-money on our society, the fears would disappear. Only the government should produce our nation's money, no bonds, no borrowing, no debt. Inflation would then be strictly controlled and existing debts could be paid and then finally eliminated, and this would also bring a welcome end to financial fearmongering.

 

 

 

 

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