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”.

 

Leo Tolstoy“Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal – that there is no human relation between master and slave.”

Leo Tolstoy, Russian writer

Press release 6 June 2018

SWISS TO VOTE ON A SEISMIC SHIFT TO THEIR BANKING SYSTEM

Positive Money New Zealand, a not for profit enterprise advocating a change to our banking and monetary system is eagerly awaiting the result of a referendum in Switzerland on the 10th June that has the potential to shake up the international banking system.

Don Richards, National Spokesperson for Positive Money says “On the face of things, the referendum appears innocuous enough as it proposes that the Swiss Central Bank issues the Swiss currency”. It currently does that for the notes and coins which constitute 10% of the money in circulation while the other 90% is created by private banks at the click of a button to finance loans, mortgages and financial products.

This means that the money in a Swiss citizen’s bank account is not legal tender, in fact it is not even their money. It is a liability of the bank to the account holder and the bank promises to provide the money, when asked to. This does not comply with the intention of Article 99 of the Swiss constitution which states that the money and currency system is a matter of the state.

Some people say that if it ain’t broke, don’t fix it. An IMF discussion paper titled The Chicago Plan Revisited, issued in 2014, said that bank’s ability to create money ex nihilo (out of nothing) created instability through boom and bust cycles. In addition, the paper said there was the possibility of runs on the bank as the banks liabilities exceeded the amount of available credit.

If that was not bad enough, as 90% of the money in circulation was created to finance loans, overdrafts and financial products, the system requires more people to get in debt than pay off their debt for it to work. This is unsustainable.

According to the IMF discussion paper, a system where the central Bank issued the currency would smooth out the boom and bust cycles, eliminate runs on the bank and dramatically reduce both public and private debt. In addition, it would provide productivity gains of 10% and steady state inflation dropping to zero.

There would still be a role for the banks as they would continue to offer all of the normal financial services but wouldn’t have the unfair and disruptive ability to create the money that they lend out.

Richards says “The rest of the world is watching what happens in Switzerland as most banking systems, including our own, operate under the same system and it is time for a change.”

For information, contact Don Richards National Spokesperson for Positive Money New Zealand

Email address hm info@positivemoney.org.nz

Cell: 0274 778 147

Phone wk: 07 307 1158

Phone hm: 07 307 9366

ENDS

 

 

 

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