A Simple Solution to the Debt Crisis - Positive Money

[MrFinerty]

The economics behind this is heavily, heavily flawed. The implications of these suggestions are incredibly dangerous and will leave people in a much worse state than they are now. What do you mean by "real money"? What do you think money is?! Look up a definition of money. Numbers on a computer and paper cash are completely equivalent! This is the sort of economics that smacks of the shallow thinking and lack of detailed understanding of a bunch of politics students.

[MrFinerty]

@MrFinerty "than they are in now"*

[thicktankrider]

Which program did you used for creating that video? I have the intention to do something like that as well

[laskji]

Why does the government have to spend money into the economy. Why not give the money to the people to spend into the economy?

[arcanekrusader]

Is your proposal similar to Bill Still's outlined in 'No more national debt'?

[a2zhandi]

getting rid of fiat currency will eliminate greed. Eventually, we'll end up on the right path. To a higher state of consciousness. We've been held in check by the controllers because of debt restrains!

[yaimavol]

@PositiveMoneyUK In 1913 the Federal Reserve was created with the promise they were "going to end the boom and bust cycles of the past century". They have utterly failed in their mission as has every central bank in the world. Australia, the richest nation per capita in the world has a national debt. They also have a central bank that operates as dysfunctionally as the rest. Any solution that includes the Bank Of England is not solution. Try again.

[etzel33]

@yaimavol I just learned that the BoE was nationalized post-WW2, so it's not the same as the Fed. The Fed was set up at the behest (the Bank Act was written by bankers) of the banks and not as some "regulatory body" of the government. Eliminating the Fed allows the banks to continue with their fraud, just without their own in-house controls they use to suck wealth from the country. Try again.

[yaimavol]

@etzel33 True, you would need to radically reform the fractional reserve rules in order to have meaningful reform, but you don't need the Fed to do that. The Fed operates on the principle of official fraud, so it cascades from there. We're going to have to think way outside the box here to solve this problem and bring in a whole new model. The central bank model is a proven failure in every nation.

[etzel33]

@yaimavol I agree, a central bank isn't necessary. This video goes that way and I understand their argument. It's the "Ellen Brown" solution and it might work, IDK. I've produced a quick, alcolhol-inspired video called "the Right of Default" which I think might eliminate Fractional Reserve Lending without direct regulation... check it out?

[yaimavol]

@etzel33 excellent, thanks for that. You might also want to study the Nazi and Japanese monetary systems that saw these two nations boom while the rest of the world was mired in Depression. Of course, the first thing the Allies did upon victory was set up a new central bank. Japan is now 120% of GDP in nat'l debt. There are plenty of options out there. Wealth is just a creation of the human imagination -- as such should be unlimited.

[vbee75]

The real problem is that when the BoE was created the government handed over the right to print money to private individuals. Even though the BoE has ostensibly been natiionalised, the government still has to borrow money from private individuals. Getting rid of fractional reserve banking wont solve the debt problem. We will still have a deficit, billions of pounds will still be paid in interest to a group of private individuals, the richest peoplein the world, Rothchilds etc

[vbee75]

actually, my mistake, the bank of england isnt privately owned but its subsidiary the Bank of England Nominees Limited is.

[vbee75]

Something smells ify here. The Bank of England is a private bank owned by private individuals. It is the central banking system that is the problem. Before the Bank of England came into existance government printed its own money and there was no deficit. Its the central banks that have us by the short and curlies and who have crippled us with debt.

[OrwellWasRight2]

@PositiveMoneyUK ...So the Bank, which we might think has loyalty to the nation, may well have more loyalty to a foreign power, or a Rothschild.

---Article | December 2, 2011 - 11:46am | By Mike Robinson---

[OrwellWasRight2]

@PositiveMoneyUK 'The point of a nominee company is to hide trading activity. Say, for example, the Queen wants to sell her stockholding in M&S (if she has one). When that trade is done, the perceived owner is BOEN, and not the Queen, and trading activity is hidden.

At present, the nation has no way of knowing who the Bank’s customers are, what services it provides to them, or what holdings they have. This is just one of the Bank’s many Freedom of Information Act exemptions...

[OrwellWasRight2]

@PositiveMoneyUK 'The Bank of England is certainly independent, despite being wholly owned by the nation; the Bank’s shares are held by the Treasury Solicitor. However, the Bank is operationally completely independent from government, with no oversight or accountability outside of the notional requirement to keep inflation below 2%.

--- Article | December 2, 2011 - 11:46am | By Mike Robinson ----TheUKcolumn.

[TheTrueabundance]

but why give the bank of england the ability to print money? The bank of england is private, so we'd just be repeating the problem we have now. What about getting rid of the monetary system completely and start a resource based economy? Check out the venus project and Zeitgeist movement for details

[PositiveMoneyUK]

@OrwellWasRight2 In addition, the pover to create money would not be handed to the BoE as it currently exists. That’s not the case. That’s what the Bank of England Act is designed to address. This is dealt with in section 27. See "Our Proposals" on the website.

[stefzaf]

simplesolutions.gr

[mubaraqtopeakere]

...under the guise of fostering economic growth and development; provide equal-opportunity for all, to work and get paid in a natural environment of limited jobs necessitating reduction of an individuals' work hours, to accommodate the unemployed and eliminate unemployment.

[mubaraqtopeakere]

It is the obligation of government and not private banks; to correlate between Purchasing Power of Money and Real Gross Domestic Necessity Goods (RGDNG) of Food and Agriculture as the unit of account. Thus, the government can formulate policies of preventive resources mismanagement due to commodities supplied by manufacturers, exceeding commodities necessarily needed and demanded by consumers, in a "wastful' and "unfare" "free-market" in producerism and consumerism,...

[mubaraqtopeakere]

It is the obligation of government and not private banks; to correlate between Purchasing Power of Money and Real Gross Domestic Necessity Goods (RGDNG) of Food and Agriculture as the unit of account....

[mubaraqtopeakere]

‎""We do not pretend, that a National Bank can establish and maintain a sound and uniform state of currency in the country, in spite of the National Government; but we do say that it has established and maintained such a currency, and can do so again, by the aid of that Government; and we further say, that no duty is more imperative on that Government, than the duty it owes the people, of furnishing them a sound and uniform currency."" Abraham Lincoln

[mubaraqtopeakere]

...The state is obliged by law against indebtedness, likewise, the state is obliged by law, to support and guard an individual in and from debt. Debt is bondage; and only when you have the means and pay your debt as at when due, that you get liberated from the bondage of debt.

[mubaraqtopeakere]

It is obvious of occurrence of catastrophe, when an individual or a state finances its expenditures (budgets) by acts of indebtedness, with no means to neither stop nor pay its rising-debts. Thus, neither the indebted individual nor the state, should be trusted on its ability (power) to commit to debt payment as at when due, nor to demystify temptation to harm the creditor....

[pcuimac]

What kills us? An economy that as to grow exponentialy because of interest paymens on debt. That leads to exponential consumption of energy and resources. Poverty leads to exponential growth of the human species becase of no birthcontrol

[MustafaBiggun]

@positivemoneyuk

WHOA WHOA WHOA!!! only allow THE BANK OF ENGLAND to create money????!!!! the bank of england IS a PRIVATE BANK!!!!

END the bank of england and create a NATIONAL BANK with the SOVEREIGN power to create money. do your research!!!

[Bushcamper4Sale]

You got the documents but you didn't read them. Money is created by lending TO the banking system - not borrowing from the banking system.

[Kritiker9]

The money was borrowed by the National Bank or Central Bank or the Fed. Banks not have the right to make money!

[spikeyman000]

Nice reading all the comments some great ideas. I would say give back the power to issue money back to the government save 65bil a year on interest payments alone, have a debt jubilee, end fractional reserve backing, give money a value other than an interest based ponzi scheme created to throw working people a line then squeeze the life out of you. The model was doomed from the start. Now we have governments borrowing to pay debts, stand in a bucket and try and lift it.

[Barseflips]

Have you got a version of this video without the annoying percussion? I really can't concentrate on what you are saying?

[zerosumequation]

The simple solution to the debt crisis is NOT to get into debt in the first place. Credit allows anyone to live well beyond their means, buy houses, cars, have holidays that can be payed back at some future time. Why not go out and earn the money first, and not get into debt. Its because its human nature to want a "free ride", but as we all know - there is no free ride. Every debt must either be repayed or defaulted on [ not paid ] and everyone has to take the consequences of their actions.

[etniks69]

@zerosumequation

Your suggestion as to not get into debt to solve the problem is common, but it only shows you don't understand how Fractional Banking works.

What you don't understand is that in this fraudulent system, NO CURRENCY CAN EXIST UNLESS WE ARE IN DEBT.

IF WE DON'T BORROW, THERE IS NO MONEY TO TRADE WITH!!!

UNLESS YOU GET THIS TERRIBLE FACT, YOU WON'T GET THE ESSENCE OF FRACTIONAL RESERVE BANKING.

We're subjected to be in debt in order to have currency.

This is why it is evil.

[PositiveMoneyUK]

@zerosumequation The problem is that if nobody would go into debt, there would be no money in circulation in our present system. (The way of life of people - living beyond means - is a part of problem too, but it's secondary; and it's again this system that taught people to live this way.)

[Slave2PaperWithInkOn]

@PositiveMoneyUK People and therefore COUNTRIES that are in debt - do in fact have CONTROL over the international banking system! lf ENOUGH indebted people DEMANDED reforms (ie Complete overhaul) and their demands were not met - they could just REFUSE to pay "back" - their (?) COMPUTER DIGITS - Leaving the FEW banking families to sign up to welfare! Just a thought.Now when's that distracting GAME on?

[RachelxxQxx]

@zerosumequation I agree to a certain extent but what about people like me who can't find a job? I've lost count of the amount of C.V's I've handed out......



[flitsendsnel]

@zerosumequation I couldn't wait for 40 years until I've earned the amount of money needed to buy a house for my family. The problem is that I need that house immediately, whereas earning the money needed to buy it would take years. Therefore, mortgages. However it's true that banks should have been stricter and more ethical about whether people really need the loan (for example housing) or not (a fancy car, exotic holidays).

[andielines]

@zerosumequation YOUR'E OBVIOUSLY NOT GETTING IT YET THEN?

[cr0uchingtiger]

@zerosumequation I don't think you get it. Consumer debt is a small fraction of a country's debt. The real debt comes from government borrowing to fund military projects and the banking system itself which creates debt exponentially when large corporations borrow.

[BenedictSpinoza]

This bloke doesn't have a clue.

[bankingreform]

Great video Positive Money. Keep up the good work.

Simon Dixon

[MOLEFANGS]

It was going so well until it said that only the Bank of England should be permitted to create money, at which point it became clear that the 'well meaning' filmmakers either haven't got a clue or they are trying to divert attention away from the real culprit, THE BANK OF ENGLAND.

One small point. The guy says, 'this is no conspiracy'. What I assume he meant to say was, 'this is no conspiracy theory' - the usual epithet used by cynics thus arousing my suspicions.

What is it then? An accident?

[wdolek]

Wrong... Central bank is limiting amount of money private banks can "loan" - because of required minimum bank deposit (in percents). Private bank can't loan more... Go and open some economy textbook... (and don't forget to read)

[tothemax01]

@wdolek Wrong, in UK (note this is PositiveMoneyUK) there is no statutory cash reserve requirement for banks, same as Australia, NZ, Canada. Nor is it necessary for central banks to exist for the money supply to be limited. Indeed, central banks have always been the greatest force for monetary expansion, not private banks. Private bank credit expansion is naturally limited by the adverse clearing risk from competitor banks.

[FUN144]

Is n't the Bank of England the elephant in the room, i.e. the problem not the solution..

[seemorerocks]

The whole world faces economic and social collapse. Without getting rid of fractional reserve banking, fiat currency and compund interest nothing is going to happen.

Well done!

[eshah100]

This video doesn't make any sense.

If a bank loans me money, I don't just get some made-up number typed into my account - no, I can then go to the ATM and get actual cash from it!

Yes, the system flawed because it is based on creating intrinsically worthless money out of nothing - but it's not the private banks that do this, but the governments and central banks - by printing money that's not backed by gold or anything, and then lending it to the banks almost for free.

[PositiveMoneyUK]

@eshah100 When a bank loans you money, it doesn't need to take this money from a borrower, it just print it to your account. And yes, you can go to the ATM and get actual cash (however people rarely do, vast majority of transactions is done electronically.)

It is private commercial banks who create 97% of all money - read the detailed explanation on our website (positivemoney dot org dot uk).

You are right in blaming government - but it should be blamed for allowing this system to continue.

[eshah100]

@PositiveMoneyUK: [1/2]

Ok, so that's what you mean by "creating money". The banks take some of the money which they are supposed to store for people of group A, and lend it to people of group B - in the hopes that not everybody in group A will want to take out their money at the same time.

But so what? It's a risky system for everybody involved (the bank, group A, and group B), but they're all involved out of their own free will.

[agentofnecessity]

@PositiveMoneyUK It is the Bank of England who prints and then loans it to the Government for a price. This is the debt that is then socialised upon everyone in said country. Why blame the government when they can print their own money and have a debt to no-one? Why do you advocate the power to create money from thin air should be the Bank of England?

[Fippletest]

The remit of the Bank of England is to support the economic policy of Her Majesty’s Government, including its objectives for growth and employment.

(Bank of England Act 1998, section 11)

By way of the BOE, the government already creates its own new digital money, to eliminate the interest to pay on the National Debt.

Printed money is always debt to someone, a promise to pay the bearer.

[pondman27]

@PositiveMoneyUK

Is the Bank of England not involved in doing exactly the same thing? Printing interest bearing debt into the economy too.

Should we really continue to rely on a central bank or even the present system of government to determine where issued currency goes?

Is it not ultimately each of us contracting with one another that is the currency?

And what do we do about all those government bonds that are our children's lives?

[etniks69]

@pondman27 The Bank of England is NOT a bank of the English people, it is a PRIVATE BANK owned by PRIVATE BANKERS. The name is misleading.

Yes, this fraudulent bank is issuing money created out of thin air, while charging interest to the taxpayer.

The same action could be done INTEREST-FREE by the UK Treasury and the government could also be DEBT-FREE. No need to pay interest to bankers.

Once the money is injected into the economy by government, people saves it for banks to lend w interest

[PositiveMoneyUK]

@etniks69 The Bank of England is wholly owned by the UK government. It isn’t private, unless your key source of information is unreferenced conspiracy theories.

[etniks69]

@PositiveMoneyUK

I think you may be right. I read not long ago that in the second half of the last century the bank was taken over by the UK government.

I have to do more research on that.

If you have any links, pass them up.

However, the end result in the use of the fraudulent Fractional Reserve Banking is still the same.

[eshah100]

@PositiveMoneyUK: [2/2]

People who feel the need for "risk-free" storage of their money, can choose a bank that indeed only stores, and doesn't "gamble". If people choose not to do so, what moral right does the gov't have to force them?

As far as I can see, the system only becomes dangerous when the gov't

a) prints worthless paper money and injects it into the banks, and/or

b) bails out failed banks.

Without these distortions, I don't think "private money" would be a problem.

[agentofnecessity]

@eshah100 you know the score m8 this is propaganda man no wonder the people who made the video are an organisation. It sounds like it was written by the same people who write the newspapers.

[mikazo111]

@eshah100 The money the government issues may not be backed by gold, but since money is meant to be a measure of the collective value of all the goods and services in the economy, in a sense money is backed by the collective wealth of the country. Keeping the value of the dollar high is essentially just a matter of figuring out how much money to print to represent all that collective wealth. However, private banks do not take this into consideration.

[SOSTacoJohnson]

@eshah100 Lol watch the video again kid.  Its a very simple premise anyways, called fractional reserve banking. It is the largest scandal in the world. & best of all, that's only 1 way that banks create money from nothing. You might want to search for "van mises institute federal reserve". Perhaps this will shed some light on how the monetary system works. & yes, the world is as scary as the video will lead you to believe. Even scarier really... but best not to frighten the sheep LOLOLOLOL

[eshah100]

@SOSTacoJohnson "Its a very simple premise anyways, called fractional reserve banking"

Yes, but the alledged implications and political conclusions the video draws about it are dead-wrong.

@spikeyman000 "give back the power to issue money back to the government"

No, give it back to the PEOPLE. Free banking is the only way to have a monetary system that is both stable and fair, and doesn't waste billions of tax-payer dollars!

[SOSTacoJohnson]

@eshah100 Umm. I feel that I should at least tell you, that as a math-science student with a minor in finance, you have absolutely no idea what you are talking about. It makes you look like a stupid sheep, and you should attempt to reverse you limited understanding of the world, if you ever want to see it change...

[heroinjapan]

@eshah100 Yes, but only as long as the bank still has liquid assets to hand out. The vast majority of a banks assets are not liquid, but instead things like IOUs from lenders (that hasn't been paid back yet). If too many people take out too much money, the bank will collapse because it will quickly run out of money.

[eshah100]

@heroinjapan: Well, then it will collapse. Just as any other business might go bankrupt if it takes too many risks.

In a free banking system, most customers would simply choose to deposit their money in banks that AVOIDE such risks (like uncontrolled speculation).

But as long as the government simply lowers the base rate or even directly bails out banks which are in trouble, there's no incentive (neither for the banks, nor the customers) to care for stability and avoidance of unnecessary risks.

[looseSpark]

Can you recommend a book to help noobs understand Money / Finance / the Economy. Thanks.

[PositiveMoneyUK]

@looseSpark

Yes. There is brand new book "Where Does Money Come From?" - A guide to the UK monetary and banking system. This book was launched at a conference on Banking on 29 September 2011. Professor Charles Goodhart, former member of the Bank of England’s Monetary Policy Committee has written the foreword to the book. You can buy it on the website of New economics foundation (neweconomics dot org)

[looseSpark]

@PositiveMoneyUK Thanks very much!

[mubaraqtopeakere]

Long-term Elimination and Prevention Technique for Inflation and Unemployment

In an ideal situation, where and when Real Gross Domestic Necessity Goods (RGDNG) such as Food and Agriculture is the unit of account, demand and supply of necessity goods (food and agriculture) is directly proportional to Real Gross Domestic Product (GDP). Thus, Real Gross Domestic Necessity Goods (RGDNG) prevents inflation and unemployment.

[mubaraqtopeakere]

An intrinsic, limited and scare non-necessity commodity such as gold, silver nor fiat money, as the unit of account, and non-globalization of macroeconomics is to blame for financial crisis. Food and Agriculture, as the unit of account, is the long-term solution for financial crisis, with complement to rules under the Rome Declaration on World Food Security. Do you agree or disagree?

[Adriaan1950]

Dear all,

Why not take advantage of the system and create Money out of nothing for ourselves? Check how in the video:

MONEY for FREE (1.) The Secret that Bankers don't want you to know. and:

MONEY for FREE (2.) The Secret that Bankers don't want you to know.

Let's get together and start our own bank. It's easy enough.

With kind regards, Adriaan Koreman

[GerardFoucher75018]

Totally agree with yoru video ! Nice job ! A few questions though : are you sure that the Bank of England isn't the prime supporter of the whole system ? What about #basicincome as a new way to build a symetric and fair way to create money ? Have you heard of C.H. Douglas ? What about Local Exchange Systems and complementary currencies ?

GerardFoucher75018#p/u/18/lDOX­-pPZw60

[reevolutionable]

Its really a con when you think about. The government trades its bonds for money and has to pay interest on it but the central bank (federal reserve/bank of england) prints the money to begin with, so...where does the interest to pay back come from? new money created from loans? but they always come with interest to pay back so...where does that come from? As far I can tell it doesn't actually exist. So WTF?

[reevolutionable]

One massive problem with "simple solution", The bank of England is still a privately owned bank owed by private shareholders. do you think their gunna go along with this? especially when their making trillions off of it. It would just make the situation worse if you centralizes it, financial dictatorship? The only reason the things are the way they are is because the top 10% or the "elite" are soulless, diabolical, greedy motherf**kers!!! I recommend you watch some of the zeitgeist movies.

[tothemax01]

How do you create these videos? Is there special software to do this, and do you draw the pictures yourself?

[allanthemsdisco]

seems like such an obvious solution but i gotta feeling we are a long way from it

[mrblack61]

I agree with the theme of the video for the most part (debt free money / take the money supply power away from the banks) But!....

Why not entrust the the goverment with the control of the money supply directly?

We vote them in power where as the BOE governor is appointed! It would mean that the public would have a direct say in how things are run and the goverment would be 'VOTE' motivated to perform in this area.

Why not completely severe the banks from the supply equation?

[soberauer]

Wouldn't this reduce the value of money?  Isn't the value of money due to its scarcity? I'm not an economist, but it seems like doing something like this would reduce the value of the pound against other currencies. Perhaps in order for this to work we'd have to scrap the debt based money system worldwide?

[olrailbird]

Your idea is simple, but the real solution is to eliminate interest.

[Aaricia69]

The video looks very cool, but you forget to mention that one of the reasons of this massive global debt is the economic imperialism that some countries such us the UK or the US exercise on others.

Many small countries in Latinoam'erica, Africa or Asia are literally sold to Anglo-american corportations which bride the local politicians. European companies also do the same.

Have you ever thought why is Africa is in the situation it is today ?

[PositiveMoneyUK]

@Aaricia69

It’s the other way around. The way how the system works (how money is created out of nothing and lent to people incl. poor countries) is the root cause of the accumulation of such a massive debt and also the cause of accumulation of wealth in the hands of few corporations giving them enormous power which they can use for “economic imperialism”.

[PositiveMoneyUK]

@Aaricia69

Our debt based monetary system is directly responsible for third world debts. Until we recognise that a debt based system will not work and cannot work, the third world poverty will worsen.

[Tressco]

"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes.

Money has no motherland; financiers are without patriotism and without decency; their sole object is gain."

- Napoléon Bonaparte

"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks."

- Lord Acton

[Bamlikebambam]

it doesent mather ... money alone isnt the problem. Its they way this whole system works by exploiting nature, and you cant cancel that while still using money. What we need is a Resouce Based Economy! That is they way to be self-sustainable and keep on living our lives, even better then before. Ive made a researced and its quite viable, only thing we need is people to be awared of it. You can find alot of information on internet about RBE. I tihnk Zeitgeist movement also has alot of info. onRBE

[TalkingThrees]

What I've seen in this video resembles some of the script of this >> watch?v=ZPWH5TlbloU << But yours more like a 4 minute version in a different flavor :)

[nwofunclub]

So this video was actually made by the Bank of England or someone one their behalf that is why they are suggesting tBank of England should have the power to create the money ... but they do that anyway. Never a dull moment with these guys!

Who created the financial crisis? The banks did, under the supervision of the Bank Of england?

[hablerz]

@nwofunclub Indeed , the treasury should create the money , not the Bank of 'England' . A lot of researchers have found its a private company in the hands of the elite families.

[Biel7318]

this solution might create far worse problems that what tries to solve.

if the bank of england (or any other central bank) were really democratic this would be great, but central banks are not democratic.

in any case the first step should be the creation of a truly democratic bank.

[ALBIONTYKE]

De-population is the answer, well thats what the Rothschild's want anyway.

[lovelife1955]

Governments use banks to swap international debt. They are as much the cause as the solution.

[booktop]

The voice sounds like Neil Tennant from The Pet Shop Boys.

[WezKitikonti]

The banking system gives NO lawful consideration of commensurable value to the debts it otherwise falsifies we owe it, payments of principal should be retired from circulation; and thus too, there is NO property at all of the bank, ever at stake, which could possibly justify its unwarranted imposition of interest%%%%%%%%

[WezKitikonti]

w w w [ dot ] whatdotheyknow [ dot ] com

/ request

/ demonstrable_facts_of_a_catego­ri

[vimeocomuk]

What does positive money think of bitcoins? ( If it was totally 100 % unhackable)

[fuckoverload]

This needs 10 million views. And so does this: watch?v=gY1EcCUu5nw Short, informative, excellent quality videos that, if you're not already familiar with the subject material, should cause one to screech to a halt and do some very serious thinking.

Thanks for doing what you are. I think it is vitally, vitally important that people understand this and pass on the knowledge. It SHOULD be part of the public discourse - it's just very hard to believe it's really true.

[virtualpilot45]

Just stop all the money printing/inputting and back each currency in the world to set quantities of gold. Is this so hard for politicians to comprehend?

[kroovyandcal]

Wouldn't this solution centralize power?

[fuckoverload]

@kroovyandcal 'Wouldn't this solution centralize power?' - Yes. And we really need to be asking what it is we actualy want of our governments. Think for a moment who has access to them. Think whose interests they really represent. Think of all the productivity grabbed by the wealthy who contribue nothing except financial backing. The world's problems are technical issues needing a scientific approach - not opinions or political grandstanding. Money is holding back our developement presently.

[kroovyandcal]

@fuckoverload I'm American. According to our Constitution, it is our govt that is supposed to be the sole issuer of money. I don't know what the rules are in England, though. In America, if we just followed the Constitution I think it would make for a better society.

[fuckoverload]

@kroovyandcal 'I'm American. According to our Constitution, it is our govt that is supposed to be the sole issuer of money'

I know. And that is very, very far from being the reality of what happens in your country. And the reason I previously mentioned about asking what it is we want of governments, you have to ask yourself that if they can mismanage just about everything else they touch, creating HUGE inefficiencies and division as they go, for what purposes should they be creating currency?

[kroovyandcal]

@fuckoverload I'm listening to various opinions with regards to solutions. If there is not some mechanism to tie down the govt so that it can't just spend spend spend, we would quickly see hyperinflation in America. Most people offer the gold standard as some panacea of a solution, but gold is already amassed in the hands of the elite international banksters that own everything. An amendment saying govt can't issue but so much money, etc, probably won't work. Emergency funds might be needed

[lokidj01]

@kroovyandcal THe government doesnt issue money, it borrows it from private banks at interest. This is the case in most countries of the world. That is the main problem.. All countries should follow iceland, default on their debts and take back the power of creation of money from private banks.

[JimBeattie]

@lokidj01

Quite right.

Iceland refused to pay the stupid lenders and prosecuted their senior bankers for fraud. Its economy seems to be recovering. Ireland accepted the debt and its economy is now a basket case.

Anyone who lends money to a stupid economy or financial bubble such as property deserves to lose it.

[agentofnecessity]

@lokidj01 i completely agree, that is why i can't understand why this video advocates the Bank of England as the solution, they are a private central bank too. Take the power to create from them and give it to the government, no one else = no interest. Giving the power exclusively to the B of E (like this video preaches) = more interest.

[kroovyandcal]

Respond to this video... Situations have been created in the past (our civil war, for example) by banks and their agent provocateurs in order to force our govt into debt.

[PositiveMoneyUK]

@kroovyandcal - at first glance it might look like this would centralise power, but take a look at where we are now: the amount of money in the economy depends on the lending policies of a few people at the head offices of the 5 main banks in the UK. There is no democratic oversight or accountability over these people, and the vast majority of the public and MPs have no idea that these senior bankers even have this power or ability to affect the money supply.

[Anubeon]

Also, my understanding of @PositiveMoneyUK'S proposals is that the creation of debt-free fiat currency would not be mediated by the subjective whims of politians, but rather by objective measures such as inflation or price-level targeting. What extra power the monetary policy committee would gain, would be severely restricted by the need to use inflation targeting (as is the case now with base rates rises and inflation). The MPC have an objective goal and are held to account w.r.t. that goal.

[PositiveMoneyUK]

@kroovyandcal - ... and the proposal would separate the decision over how much money is created, and how that money is spent, so it eliminates a huge conflict of interest. The Bank of England would only be deciding how much money the economy needs to run, but not decide how that money can be spent, in the same way that a mechanic will decide how much oil to put into a car, but doesn't tell you where you should drive.

[ajhumour]

wonderful!!!

[GreatGungHolio]

Nationalising the creation of credit is the best solution, I agree.

But I still think a few lynch mobs chasing private bankers down the street would make the point crystal clear ; )