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

Guarding against inflation

Inflation is inevitable if we let profit-seeking bankers print money at a rate of up to $14 billion a year. When we stop the banks creating money and give that power to a dedicated body such as the Monetary Policy Committee, it becomes much easier to keep inflation low.

At the suggestion that any part of the state create and spend new money, many people immediately think of the farcical scenes in Zimbabwe in recent years. Indeed, the most common misguided criticism of the type of reform that we are proposing is that it will cause significant inflation, as an irresponsible government prints as much money as it requires for its own needs.

There is no risk of this happening in the environment created by this modernised system. For one thing, decisions on changes in the money supply will be made not by elected politicians but by an independent body (the Monetary Policy Committee). Politicians will have no influence whatsoever on the amount of money that will be created.

The Monetary Policy Committee ’s mandate will be to consider the needs of the economy as a whole in deciding on the rate at which new money should be injected into the economy. The needs or desires of the elected government do not factor in this decision at all. In fact, the members of the MPC should be expressly forbidden from considering political matters or the intentions of the current government in making the decision

Detail on how it will work is contained in The Solution - Detailed - Guarding against inflation.

Distributing newly created money

Under the current system, new money is created by the main banks and pumped into the housing market and property speculation (with a tiny amount going into productive businesses).

If we stop banks creating money, then any newly-created money can be used to reduce the taxes we have to pay, invest in public services and infrastructure, and reduce the national debt. Newly-created money could even be distributed directly to individuals and families, helping the public reduce our debts and stimulating the economy.

Detail on how it will work is contained The Solution - Detailed - Distributing new money.

 

 

 

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