Occupy London: Are they wasting their time?

[Margitt1227]

I would like you to explain more what sort of system we shold have and how we could live without the economic boom and bust cycle. It is easy to find the faults in the current system, but do you actaully have a better alternative to propose and how to implement it!?

[bankingreform]

@Margitt1227 I dedicate a whole chapter to this in my book "Bank To The Future: Protect Your Future Before Governments Go Bust'

Should give you all the detail you want.

Thanks for commenting.

Simon Dixon

[IlRezzonico]

@Margitt1227 You must be mistaken. Our former Marxist prime minister, Gordon Brown, abolished boom and bust several years ago.

[godfathercwq]

As a bank I lend you £100 but when you pay me back I want 3% extra. If you ever pay me back you will still owe me the interest. So where are you going to create that money. A government borrows millions and filters the money down adding more interest. Debt from invented money is impossible to pay back because WE don't create money. The banks do. So multiply all the money ever created globally over 100years minus major war and defaulting depressions and you have the size of it.

[kaplash]

U may Gain Great Knowledge by Listening To 'JOHN HARRIS ' Explain Some Things In Simple English + Ur Rights ?

[kajmobile]

more fed conspiracies from someone who doesnt know how banking works. paying back all debts will not reduce the money supply to nothing. when u pay back money that i lent to u, it goes into my pocket, it doesnt disappear from the money supply.

and debt greater than the money supply doesnt mean we cant pay back all debt. debt is paid back with income, not money supply and there is plenty of income to pay all loan payments

[bankingreform]

@kajmobile What I share is from my experience as an economist and banker. I suggest reading up on money a bit more. All economist know that when debt is repaid, the asset and the liability leave the banks balance sheet and the overall money supply is decreased, nobody lent the money, it is called a multiplier effect in economics. The shortfall between debt and money cannot be paid through income, it can be paid when bank interest is spent on staff etc., but won't be as economic growth = debt.

[petersz98]

@bankingreform

Isn't the answer for wages to rise so people don't need to borrow so much since wages have fallen below productivity growth in the USA and other countries and big corporations are making healthy profits? Where does the money come from when you get your wages from work is that real money?

[bankingreform]

@petersz98 Unfortunately not. There are two rules to our current monetary system.

1. If you want more money in the economy, you have to have more debt.

2. If you want less debt in the economy, you have to have less money.

Eg. Continue debt until we crash or create a depression. You choose.

Any other measures to manipulate wages etc. will not solve the monetary problem and hence the reason why politicians, economics, central bankers cannot figure this one out.

Everything else is patch work.

[petersz98]

@bankingreform

So is the answer then to go back to a new gold standard like existed up until 1971?

[bankingreform]

@petersz98 Gold standard does nothing to fix the problem that banks create our money supply. We believe it is not so important what money is backed by, more important who controls it;s quantity.

Gold has the disastrous effect of people thinking we have an effective reform, but it will always be removed in light of the depression it will cause due to the nature of debt based money.

Thanks for desiring

Simon Dixon

[godfathercwq]

@petersz98

It is posible however a depression would have to happen. It will probably happen nonetheless. Reverting to sound money would have to be gradual and would take roughly 17 years to implement

[shorerydr10]

@bankingreform i think short term gain (ie going into a depression) for a decade is better then becoming like japan where we have no growth for 20 years

[godfathercwq]

@kajmobile You-ill informed ignorant baffoon.

[douwebeerda]

What might be interesting for the speaker and the people here is the booklet of Margrit Kennedy about Interest and Inflation Free economy. kennedy-bibliothek.info/data/b­ibo/media/GeldbuchEnglisch.pdf

Awesome presentation by the way :-)

[BuddhaDhatu]

Brilliant presentation. A lot of food for thought and, more importantly, a roadmap for action and the inspiration to start working in a productive manner on these issues.

[bankingreform]

@BuddhaDhatu The world needs solutions right now and I believe any action without solutions is wasted energy and purely social unrest.

Thanks for your comments.

Simon Dixon 

[MindWinger]

And, by the way, I think your manner of speech is first-rate. Don't sweat it.

[MindWinger]

I'm with you, Simon. It's becoming increasingly obvious that the current system does not and cannot work for any but a handful of elites. We now see the masters of finance engaging in ever more desperate contortion acts to try to prop up this ill-fated economic system. And these futile attempts are beginning to be recognized as such. Yes, the problem is the system itself. Your work details the structural insanity of it all quite well... and makes us aware of sane alternatives. Thank you.

[pangallion]

I really want to listen to this guy but I am unable to. I am sure I will agree with a lot he will say about a sound money system, getting away from all money entering the system as debt via fractional reserve banking etc. but that affecttion of ending statements with an interrogative tone is like hearing nails being dragged down a blackboard. Mate, please stop watching so much 'Neighbours', & speak properly & I'm sure you'll reach a wider audience. Me included? Er, I mean, me included.

[bankingreform]

@pangallion Feedback is always useful, so just for the sake of taking feedback on board, what do you mean by "affecttion of ending statements with an interrogative tone". I dont know what this means and would like to see if this is something I need to improve when communicating my message.

Thanks.

Simon Dixon

[pangallion]

@bankingreform Thanks for replying. I really didn't want to sound pedantic but I suppose I can't help it. Any road up, what I was referring to as an affectation is the style of talking where one says something? And one ends the sentence on a higher note? As if one is asking a question? When really one is making a statement. Teenagers do it; so do English people in Australia. Strangely, whilst in Oz I never heard one Aussie do it. Perhaps it's only me but it drives me up the wall. All the best

[bankingreform]

@pangallion Thanks for making me conscious of it as I was not aware I was doing it. That drives nuts too!

Simon Dixon

[pangallion]

@bankingreform Thanks for taking it on board, because I really want to hear what you have to say.

[pangallion]

@bankingreform By the way, I am really struggling to decide if I agree with Bill Still/Ellen Brown and think sound (non-gold backed) money is the way to go, or whether a new gold standard of some kind would be a good idea. In the end, it depends who is not only holding, but rather controlling, the world's gold right now.

[BuddhaDhatu]

@pangallion Funny, I didn't notice this at all. I guess I was enthralled with the information contained in this fabulous presentation. I went back and had a second listen and I did notice it. Despite your spurious assertion that you didn't want to sound pedantic, I think you succeeded. Perhaps Mr. Dixon might want to adjust his approach if he was addressing Parliament. However, in a time limited presentation at Occupy London, a colloquial style is more than appropriate in my view.

[danibond101]

yes yes yes, we need more people who know what they are talking about educating people. Ive been searching the internet to gain a comprehensive understanding an this is by far the best!

[bankingreform]

@danibond101 Glad it helps. Need as many people to get this subject as possible.

Thanks for the comment.

Simon Dixon

[athame57]

one solution: see 'Cameron swings' on youtube!

[ThumbsUpMyAssX]

*So we should just continue to let these bankers control our government & lives while the corporations continue to lobby against our ability to be self~sustaining ... Thanks .. But no thanks*

[bankingreform]

@ThumbsUpMyAssX Not sure how you got that from my presentation. I dont fancy that either.

[ThumbsUpMyAssX]

@bankingreform *I got the impression towards the end that you were implying that we need these banks & such ... I completely disagree with that .. We all lived life just fine before they came along .. I think we will do just fine long after they are gone*

*The only solution that can save our asses is to build sustainable cultures the opposite of what we have today ... Thats it .. There is no other way out of this ... Of course there will be a transition period .. That goes without saying*

[nykel007]

go after the Bank of England people......stop wasting time.

[MrAbsolutelyDaniel]

I DON'T THINK THEY ARE WASTING TIME BUT.. I AM PRETTY SURE THAT THEIR DEMONSTRATIONS ARE USEFUL TO SOMEONE ELSE TOO... ON THE OPPOSITE SITE..

[bankingreform]

@MrAbsolutelyDaniel I agree it is important work.

Thanks for sharing. Have you been involved in it at all?

Simon Dixon

[MrAbsolutelyDaniel]

@bankingreform Not directly but I really am behind this cause! And I believe it is such important to fight the good fight! :-)

[LibertyTime2011]

Good work my friend...my prediction is 21th Century = Bankers Demise

[MrMldillman]

So good to here someone speaking about the 3 P's of sustainability...Bravo!!!

Thank you...=)

[bankingreform]

@MrMldillman People, Planet, Profit + business success guaranteed.

Like Richard Branson's new book - Screw business as usual. He talks a lot about the triple bottom line.

Thank for sharing.

Simon Dixon

[MrMldillman]

@bankingreform --- It only makes sense!

I mean come on, how long are we gonna let big business pay-off the powers that be so they can continue to lie about how we are all truly killing our planet...Aside from big oil, the shear numbers of folks living here now are stressing all our resources...the facts are, We all need to wake up and do our part, however small, to head off the inevitable! Just think if we'd have listened to John Denver back in the 70's?

Okay, I feel better now! =)

[GreatestSingerEver01]

The rich 1% are in control of everything. They laugh at you when you want to take their money. They don't need their money because they have power. They've obtained power through money. You are just a day late and a dollar short. They are setting up a new world order financial system and are planning on microchipping all people by 2017. Through the microchip, they will be able to track you - every aspect of your life. Make sure you know who your rich 1% is. They are not your middle class,

[GreatestSingerEver01]

It is obvious to many that there are those who are purposefully trying to over-spend in order to collapse the world financial system, in order to set up a new world order financial system. People can protest Wall Street until their hearts are content, but it won't get to the problem. The problem is the Elites, the filthy rich of the world, who control everything. I guess you can call them the unseen global government. Protest won't work. Voting doesn't work. What shall you do?

[WezKitikonti]

google "Mathematically Perfected Economy"

[hbar1212]

@zentricky6969 It's not youtube, but young turks censoring it. They probably look at it as spam. We don't need Paul as president to de-privatize the Fed, do we?

[ShoreScout]

Quote:"Simon Dixon is dedicated to his mission to create a non-bank for the people under a banking system " - It's called a 'Credit Union' - Been a member for 30 years! The Capitalist system works fine when laws are enforced and contracts are honored by courts. This has not been the case. People are so doped up on "culture" and narcicism they don't demand laws be enforced. You want to learn something? Watch "American Dream" - ~30 minute cartoon on YT.

[bankingreform]

@ShoreScout Thanks for sharing. I have seen it.

But the laws of banking are not sustainable even if they are met.

Credit Uniion is a great local model, technology brings wider opportunities too.

We just disagree on the cause and effect. We believe our system guarantees rule breaking. Whereas you think rule breaking crashes the system.

Interesting debate.

Keep sharing,

Simon Dixon

[ShoreScout]

@bankingreform Our (or the USA's) Founders said it's the fallibility of mankind that guarantees "rule breaking". It's been that way a long long time - and not likely to change. Every utopia attempt in history has had its economic / banking model that claimed to fix the greedy human problem. Each attempt has involved mass murder and severe oppression of the populace. Rules are always going to be needed even in the most moral societies.

[distopiadnb]

how can you possibly sell a credit theory of money as your personal innovative idea when it goes back at leas to schumpeter? same for the "new" intuition that at zero interest rates the "brief term" solution is deficit spending -wasn't it really Keynes' liquidity trap? Then, all the story about positive money is just weird. To change banks behavour you simply need strong, political regulation to alter incentives towards production, as happened in the second postwar period, e.g glass-steagall.

[bankingreform]

@distopiadnb Hi. I have never sold the theories as my own. I am about implementing, the theories have been around for years, we have just updated them for the current banking system. Our reforms are about re-regulating the banks, but Glass Steagal on its own does not tackle the credit creation issue and needs further development to work in todays markets.

My mission is not to implement 'my' ideas, my mission is to create sustainability with other ideas.

Hope this helps.

Simon Dixon

[NearAbbeyRoad]

Tax Wealth NOT Income - that is the secret.

The best gains are out of land, not the stock market or others.

The way the land market is structured we get a boom after 15 yrs and there has to be a following bust because massive debt is created to overexploit that market.

A tax shift from wages to land values makes all richer.

We are exposed to afar eastern economy which will gobble us up. This tax shift will make our goods competitive.

[simondo3]

Good work Simon but unless you address corruption and conspiracies I'm afraid you are wasting your time. We already have a system that should work but it's not working because of the unbelievable amount of corruption in the markets, banking system and in politics.

I agree with everything you say but without addressing ALL that is wrong, you will simply chase your tail and piss in the wind.

Corruption caused the 1930's depression and the housing bubble...NOT the system!

[bankingreform]

@simondo3 Thanks for sharing your perspective. It is great to share.

We slightly differ in the cause and effect. We think corruption is built into the system rather than the other way round.

We dont think we have a system that works.

Simon Dixon

[simondo3]

@bankingreform yes Simon sharing ideas on a public platform is exactly what we need, people read these discussions and learn what kind of world we live and who controls it and what their agendas are. VERY IMPORTANT!!

[simondo3]

@bankingreform I agree corruption is built into the system by way of deregulation and deception but by WHOM?? that is what we should be discussing also. Without routing out the groups and their hideous ideologies that payed for and promoted this bastardised financial system we have now, we will never create a fair financial system and therefore a fair society. Unless you get rid of the cancer completely it will continue to come back and spread, fight the route cause first.

[NearAbbeyRoad]

@simondo3

There are two points re: the CRASH(es):

1. The ROOT CAUSE - speculation in LAND.

2. Malpractice in the financial system.

Focus is on No.2. It is media worthy to name banks and individuals.

No. 1 is not shock-horror - it is not understood.

Fix No. 2 and it may stop crashes for a while (40 yrs?). It will not solve poverty, as it will be the same ship as usual with a new crew.

Fix No. 1 and No. 2 can go undetected. Both need fixing. Most important is No. 1 by a mile LVT solves that

[NearAbbeyRoad]

@simondo3

"Corruption caused the 1930's depression and the housing bubble...NOT the system!"

Not so. Land peaked in late 1926 and then fell off, then crash. It was more overt in 2008. Gains in LAND are tax free, so surplus income is poured into LAND (houses).

In 2008 the wreckage revealed skuldugery which was not the root cause. If debt after debt is not poured into LAND then it would not have occurred. It is that simple. FIX THE ROOT. Land Valuation Taxation with no Income tax does that

[nathanielherman]

@bankingreform Thank you so much Simon. I've been struggling to put it all together in a way that doesn't point a finger or get lost in emotion or partial-picture logic. And also begins to offer solutions out of that clarity.

I've been saving myself until I've found something I thought was worth putting my effort into. I'm across the pond in America and wondering if there are parallel efforts over here. More precisely, do you know of any groups/example banks like yours or Jen Morgan's group

[NearAbbeyRoad]

1. create economic growth

2. plug the speculative holes that create damage - LAND & its resources speculation

3. a self-regulating system

4. promote enterprise

The above will work. LVT and No income tax will do that.

[gwall2001]

Shall Gov create nationalize uitilty banks to serve the interest of the people, these banks would lent to the SME and individual as they don't have to operate by the Maximizing profit notion, all they have to do is be responsible to the depositors. As for the ones who have max out their credit and could no longer afford any more loans, that is an indications of over consumption, they should be allow to go bankrupt.

This is how the free market should work.

Raise and fall by your own merit.

[gwall2001]

The current private banks that serve the perpose of maximizing profit, is the problem. They rather lend to the big corpates that have government connections, that claims to be TOO BIG TO FAIL or use their liquility to engage in speculations. The SME and individuals could not get loans from them, because they don't serve their interest.

[gwall2001]

I disagree with your notion that banks can not be let fail.

Shall a bank went bankrupt, the currency created by the bank is still in circulation. The bank will be liquidated, servicable debt and other assets sold and use to paid 1.depositor 2.bondholder 3.shareholder. Of coz there may not be enough to paid even the depositors, as they are highly leveraged, but depositors are garantee by Gov, and only the depositor, not anyone else.

That leaves present liquidity unaffected.

[GovernMentalFreedom]

Be Robin Hood and the Three Musketeers - one for all and all for one.

Make a measurable difference? Organize and go where the money is.

Occupy bank foreclosed homes, respect and protect the property

Occupy shelter is a human right. Sleeping in the cold under a bridge or in parks where CODES and tax payers money can have you removed in minutes is not smart.

Do to the banks what was done onto American families occupy bank foreclosures. May Shelter and Peace be with us all as God bless.

[donkiddick08]

the british constitution does not allow for legislation to be entrenched. so, your ideas could be accepted lock, stock and barrel by a government then, later on, another government could just revert back to the old system. in essence, anything that can be regulated can later be deregulated. the problem is the system and it needs replacing not reforming.

[bankingreform]

@donkiddick08 I hear you, but just because they can make rape legal later does not mean it should not be illegal.

If we used that argument for every reform then we might as well not implement any laws.

Everything is subject to change, but do you think we would go back to women not being able to vote?

Reforms make old ways look archaic often.

Thanks for adding your perspective.

Simon

[donkiddick08]

@bankingreform i was thinking more of how thatcher deregulated lots of things, things less controversial than universal suffrage and rape. i think the deregulation of your system, should it be implemented, could be couched in terms similar to those used for the privatisations, by promising that this will result in lower interest rates eg. i'm not against what you're proposing at all, it's just that i think capitalism/corporatism needs to be thrown away rather than repaired.

[bankingreform]

@donkiddick08 What system do you believe is better than capitalism?

Simon Dixon

[donkiddick08]

@bankingreform one based on cooperation rather than conflict such as mondragon but, on an economy wide scale.

[donkiddick08]

@donkiddick08 i only forgot about the best example i could have given- the glass steagal act!

[BlunderCity]

Good stuff Simon!

I've gone to speak to some the Occupy protestors a couple of times last month and most of them appear to have good intentions. I've spoken to them for about an hour each time and they seem very reasonable but perhaps a bit lost. They need to have access to this information.

So thanks for taking the time to educate people. I'm sure this will generate some conversation.

[NearAbbeyRoad]

@BlunderCity

The OWS movement has to stay as it focuses the problem. The solution? We all have them but most are wide of the mark focusing on the symptoms not the root cause.

[bankingreform]

@BlunderCity There is nothing I enjoy more than speaking out about banking reform and preparing people for the choices ahead.

Thanks for your support and your work at Occupy too.

Simon Dixon

[bankingreform]

@VictorphoenixDMvault I agree with you, wealth would be down to luck when we make the transition and we know that Gold is distributed in the wrong hands.

Simon

[YoungBrehon]

We need to abandon debt based money and start using Bitcoin.

Bitcoin has the potential to makes banks irrelevant.

[bankingreform]

@YoungBrehon I will be presenting at the European Bitcoin conference at the end of this month.

Very interesting watching the development of Bitcoin.

Thanks for sharing.

Simon Dixon

[GovernMentalFreedom]

Learn from Robin hood and the Three Musketeers - one for all and all for one.

YOU WANT MEASURABLE? Organize and go where the money is.

1.It is public record what homes are foreclosed on

2.Get the list

3.Send a team to check if vacant

4.Find some homeless people to occupy

5.If you break something you fix it right away.

6.Have an attorney on staff to delay eviction notices

7.Respect and protect the property from vandalism.

8.Occupy a human right instead of sleeping in the cold under bridges

[paulrprichard]

We pay interest on the debt used to create base money to the privately owned central bank.

It has been a license to earn trillions of dollars/pounds for the owners of the privately owned central banks.

[Panpiper]

@VictorphoenixDMvault In practice existing gold mines would be mined out very rapidly to the point where the amount of gold being extracted be sufficient to generate a very normal profit, no more. No one would be sitting on any 'hordes' of gold to 'control' power, as the only power they could wield would come from spending the gold, not sitting on it. Unlike the existing system where people can indeed control and manipulate currencies for power.

[paulrprichard]

Keiser Report: Gold Wars with guest James Rickards

“People say there’s not enough gold to support world trade. There’s always enough gold, it’s just a question of price” – the price in some fake paper instrument.

Or why not have competing currencies or are we slaves ?

[paulrprichard]

Keiser Report: Gold Wars with guest James Rickards

“The insiders can protect themselves, the people who lose are average citizens, people saving in a bank account, people with retirement savings, annuities, insurance policies, anything that is denominated in nominal dollars that is not going to go up with inflation, they’re the victims. This is sort of organised theft, taking money from average and giving it to the elites who know how the game is played. So that is why they like paper money.”

[paulrprichard]

End the non-Federal non-Reserve and all the other privately owned central banks around the world. JP Morgan and Morgan Stanley are big shareholders in the non-Federal non-Reserve but the general public will never be offered a share. Their website in section 7 states that stockholders receive an annual dividend of 6% as a profit for providing a paper currency. Teach yourself about the Austrian school of economics and you will understand we have centrally planned economies not free market.

[paulrprichard]

w w w (dot) federalreserve (dot) gov - has the gov suffix when in fact it has nothing to do with government.

Only a few years ago people would be labelled ‘conspiracy theorists’ for pointing out the private ownership of the non-Federal non-Reserve.

So how much has been paid to the private stockholders these past 98 years you might ask ?

Absolutely no idea because us debt slaves are not supposed to know who owns the stock of the non-Federal non-Reserve or how much stock there actually is.

[paulrprichard]

The non-Federal non-Reserve welcomes you to your destitution after 100 years of paying out an annual dividend of 6% to their mega-bank owners while having a .gov website. When you consider that Americans, both ‘democratic/labour’ and ‘republican/conservative’, before 1913 were never subject to this transfer of their wealth to the mega-banks you have to ask yourself how much less poor would the American general public be today without it and how much less warfare the world would have been spared.

[paulrprichard]

Who owns the non-Federal non-Reserve Banks ? As of July 26th, 1983, some of the non-Federal non-Reserve Bank of New York shareholdings (7m or 66%) were Bankers Trust Company 438,831 Bank of New York 141,482 Chase Manhattan Bank 1,011,862 Chemical Bank 54,962 Citibank 1,090,813 European American Bank & Trust 127,800 J. Henry Schroder Bank & Trust 37,943 Manufacturers Hanover 509,852 Morgan Guaranty Trust 655,433

[paulrprichard]

Associations between Wall Street international bankers and the rise of both Hitler and Naziism in Germany and Lenin and Bolshevikism in Ruusia.

Check out reformed-theology (dot) org (slash) html (slash) books (slash) wall_street (slash) chapter_12.htm

The same guys profited from bankrolling both sides of the European theatre of World War 2 – that is really, really special.

[paulrprichard]

Once the grassroots of both the ‘democratics/labourites’ and ‘republicans/conservatives’ recognise who their common enemy is, it’s all over for the oligarchial 0.01%

The scam has been going on for more than a century and us, our children, our grandchildren will all be debt slaves to Wall Street international bankers.

Check out dev (dot) republicoftheunitedstates (dot) org (slash) what-is-the-republic (slash) history.

[paulrprichard]

What is the purpose of a Central Bank ?

The clue is in the word ‘central’, it is for centrally planning the economy so anyone who says we have a free market is flat out wrong.

I look forward to the transfer of wealth from holders of paper to holders of gold/silver when the fiat paper dollar dies.

[Panpiper]

I completely agree that money creation through debt and the central planning of interest rates is at the heart of our current fiscal problems. I disagree that the solution is to give money creation authority to government, regardless of how independent they try to make it. I also feel that inflation as a policy is dishonest and ultimately most harmful to the poorest. My preference would be for a wholly gold backed currency and no fractional reserve (100% reserve on demand deposit).

[bankingreform]

@Panpiper Thanks and interesting.

How do you propose money is created under 100% Fractional Reserve?

Somebody needs to create it.

Simon

[Panpiper]

@bankingreform As long as the gold is held on deposit, gold backed notes could be created by frankly anyone. I am fine with them being created by government or even private, as long as regular public audit is being made of their actual reserves and the notes they have in circulation. In my ideal world money is not 'created', rather it is gold that is money not the notes themselves, but for reasons of convenience the notes would be what is circulated for the most part.

[GerardFoucher75018]

@bankingreform Debt-free money should be issued symetrically to every citizen in the form of a basic unconditionnal income.

[Panpiper]

@GerardFoucher75018 If you were going to simply magically invent new money into existence, I would agree that that would be one of the best ways of doing so. In fact I strongly support the idea of a minimum guaranteed income (similar to what you referred to) though not with new money. However creating new money to inject into an economy is both not necessary for economic growth and actually harmful in that it creates inflation that robs people of their savings, among other things.

[GerardFoucher75018]

@Panpiper No it doesn't. Creating new money in the form of a basic income just liberates the creativity of the individual and allows everyone to start exchanging again. Besides, inflation is impossible in such a competitive environment as we have. Productivity and efficiency gains constantly make up for every cent. In fact, basic income is a way to redistribute productivity gains to the community which allowed them in the first place.

[Panpiper]

@GerardFoucher75018 "Besides, inflation is impossible in such a competitive environment as we have."

It is hard to say this respectfully, but you honestly don't have a clue what you are talking about if you can say something like that.

[GerardFoucher75018]

@Panpiper Inflation comes from the pyramidal distribution of money into arbitrary sectors, and that creates booms and busts. Symmetric distribution to every individual does create new demand (inflation risk), but that is satisfied by more supply. If a price goes up somewhere, instantly new competition arises to fill the new market. You may call that inflation, the point is purchasing power, and this remains stable. In a basic income based money creation system, M3 is a function of real wealth.

[Panpiper]

@GerardFoucher75018 Purchasing power comes from productivity, not ones and zeros on pieces of paper. If it was simply a matter of printing more money to increase production, we should simply print up a million dollars per person every year and dole it out. But people who think that have the cart before the horse. Creating new money without a corresponding increase in production 'does' cause inflation. It is possible to inflate a bit and not see an increase in prices however...

[Panpiper]

@Panpiper ...however by virtue of the inflation making up the difference of what would have otherwise been price deflation caused by increases in productivity. This however has the consequence of being a tax that hits the poorest the hardest in a variety of ways, it is still an inflation tax. But it is a virtual guarantee that any government with the power to create inflation will abuse it, to all manner of dire consequence. I want to end boom/bust cycles, not simply transfer authority.

[bankingreform]

@GerardFoucher75018 Thanks for sharing. With our reforms this is possible. Debt free money can be used to pay down national debt, reduce taxes, pay a citizens income or public expenditure.

We do not tell the government how to spend it we leave that to a democratic process.

We just want to get stability back.

You bring up an important area of debate though.

Simon Dixon

[GerardFoucher75018]

@bankingreform Thank you so much Simon for your response, your work is fantastic, and important ! Here in France we're very much looking into the Basic Income solution. Giving back the monetary power to every citizen, liberating the creative forces of the country, and solving the problem of the arbitrary allocation of money to the corporate friends of the banking/government partnership.

[blueskiwi]

@Panpiper But gold-backed currency was historically the mechanism by which bankers manipulated the economy and stole power in the USA. Money supply needs to flow according to economic needs, not be tied to the fixed quantity of some arbitrary commodity. How do you get economic growth?

[Panpiper]

@blueskiwi Bankers did not manipulate the economy 'because' of gold backed money. If anything it was in spite of it. That said, bankers have orders of magnitude more power now to manipulate things under a fiat system than they ever had under gold.

Changes in money supply create economic problems by themselves. If there are changes in an economy, those changes 'need' to be communicated through the price mechanism...

Continued...

[Panpiper]

@Panpiper If a currency remains stable, changes in an economy are communicated through changes in the prices reflected by supply and demand. That information is crucial to good decision making. If an external entity changes prices by, for instance, changing the money supply, the information in the price mechanism becomes distorted resulting in mall investment and distortions in the economy. Those errors can and do result in booms, busts and massive wastes of resources.

[Panpiper]

@Panpiper Economic growth does not require growth in the money supply. That is a load of nonsense perpetrated by the same economists that gave us our current banking system, largely as a justification for it. Growth is perfectly feasible with a stable money supply and simply results in falling prices which benefit everyone. Plenty of industries live with such a reality as standard and do just fine.

[blueskiwi]

@Panpiper surely the falling prices only benefit the rich, who have savings which thereby increase in value? Presumably wages will fall along with prices so 'everybody' will be no better off. And anyone with a mortgage will find it more difficult to pay off. I don't know, just trying to work things out, thanks for the interesting points!

[Panpiper]

@blueskiwi Falling prices benefit everyone. Wages do 'not' fall along with prices. That would be true if the supply of money were to shrink perhaps, but that only happens in a perverted monetary system such as we have now. In a gold backed 100% reserve system, the supply of money grows at a very stable ~1.5% a year due to mining activity. As long as the world's population growth rate is lower than that (it is), wages do not go down. Prices fall due to better efficiency and technology.

[Panpiper]

@Panpiper As for mortgages, people would have more money available due to their normal purchases being cheaper, which would make it somewhat easier to pay off their mortgages. Interest rates would likely go up however, something that 'must' happen regardless. The dynamics of housing prices and the prices of loans would likely change quite dramatically, making it vastly less attractive to go into massive debt to purchase a home, and much more attractive to save for a home instead.

[janosabel]

@Panpiper Stable money supply means that it matches the production of useful goods and services. I the production of useful goods is increased through technological breakthroughs, the money supply has to increase accordingly, else the extra productivity will not be absorbed by the market system.

By the way, the substance (gold, paper, digital signals) of the money tokens is immaterial. Aggregate value of the money stock = aggregate value of items of real wealth = stable prices.

[Panpiper]

@janosabel You are using the same logic that is used to justify the existing system. If you are unable to reject that utterly failed paradigm, you will fail completely in your attempts to reform the system, because if what you assert is in fact true, then the existing system in fact serves it better than the alternatives being presented here and elsewhere. The money supply does NOT have to grow to keep up with economic growth. Prices can fall. Pegging to gold etc, is necessary to eliminate fiat.

[bankingreform]

@janosabel I love the way you put this. Very clear.

Thanks for adding to the conversation.

Simon Dixon

[dogbarker1981]

Fantastic video about how the current banking system works and what we need to do to correct it. Well worth listening all the way through. Thanks Simon.

[etzel33]

Best presentation I've seen from Simon so far.

[jazzcornejorn]

Hi Simon! Do you have an article, analisis or critics on Bill Still's point of view on Banking Reform? (I think you know about him, he is the author of the 2 great documentarys about money, "The money masters" and "The secret of Oz".

Greetings from Brazil

[bankingreform]

@jazzcornejorn I very much support Bill Stills work.

I put less of an emphasis on abolishing governments ability to borrow money as the effect on the financial markets will be drastic. I would rather phase out this process and governments will slowly realise they no longer need the burden of debt to balance their budgets under reform.

But Bill gets two thumbs up from me.

Thanks for sharing.

Simon Dixon

[bankingreform]

@DominoesFallingProds Discuss it later in the video when you have time.

Simon

[NearAbbeyRoad]

Martin Wolf says the trillions locked up in housing is the same money circulating amongst the buyers & sellers. With little emerging from the cycle improving the wider economy. Same with the financial services sector. Unlock with wealth and the whole economy flows.

Dot.Com bubble was benign effecting only those in it - it was CAPITAL. When money was poured into tax free LAND it tipped taking all the world. Do not monopolise or abuse any of 3 factors of production: LAND, CAPITAL LABOUR or POW!

[bankingreform]

@NearAbbeyRoad I hear you, but do you not think the fact that money is created by a bank at debt and that there is more debt than money is an issue that needs to be looked at.

Our reforms ensure more money goes to enterprise too.

Thanks for sharing.

Simon

[NearAbbeyRoad]

@bankingreform

One or more of the three factors of production were played about with affecting the balance. Search Youtube on "RSA Animate - Crises of Capitalism". Wage repression (screwing with one product of production LABOUR) meant wages were artificially low. Wages buy goods so low demand, so they invented easy credit to get low wage earners "spending" creating demand & money creation. So-called free-marketeers Reagan & Thatcher rigged free-market.

Unrig LABOUR & LAND to solve - using LVT

[PeterHebert123]

Simon, so glad to hear you nail it - what the professors and textbooks are teaching is inaccurate.

[cheer123ification]

Get in there Simon...good talk...keep up the good work....thanks

[NearAbbeyRoad]

Getting money rolling and into enterprise is the key. We pay far too much for basics like housing/land. Better planning system & clearly Land Value Taxation & no income tax will put money into ENTERPRISE, not speculative destructive pits. More money will have to go into enterprise as easy LAND speculation is cut off.

More money in enterprise = smaller public sector; improving matters. LVT & no Income tax needs little regulating to stabilize. Yes, all revenues in the UK can come from land values

[vimeocomuk]

great speech

[bankingreform]

@adribakels What is a cc video?

Thanks for the suggestion.

Simon Dixon

[LeeboProductions]

@bankingreform c c is closed catption. He/she means have subtitles.... and great talk! I feel only you and Ben Dyson accurately reflect the resaerch I have conducted sinse 2007. Excellent work. Please keep it up, I know you will!

[bankingreform]

@LeeboProductions Thanks.

Simon

[NearAbbeyRoad]

People - Labour

Planet - LAND & its resources

Profits - CAPITAL

Adam Smith laid this down - the three factors of production: 100 years ago LAND was moved into CAPITAL by a group of economists for vested interest reasons creating neo-classic economics - what we use today. Since then the economy keeps moving up and down and crashes on a world-wide scale. HAVOC!

Martin Wolf says get back to classical economics - LAND out of CAPITAL - tax land by its value - an auto scalable tax.

[NearAbbeyRoad]

People - Labour

Planet - LAND & its resources

Profits - CAPITAL

Adam Smith laid this down centuries ago.

Look at Geonomics with Land Valuation Taxation as its core - no Income Tax. The ROOT CAUSE of the CC and the 1929 crash, was that debt after debt was poured into tax free LAND. LVT removes this form of speculation for ever.

The crash wreckage revealed skulduggery in banks, etc, People focused on that, thinking that was the problem, and lost focus of the root cause - LAND speculation.

[bankingreform]

@NearAbbeyRoad I am curious about your opinion on Land Value Tax. Dont you think it is important to take away banks ability to create money.

I dont see tax solving that issue.

Your thoughts would be appreciated.

Simon Dixon

[NearAbbeyRoad]

@bankingreform

Get the FOUNDATIONS right, do not keep moving the same furniture around. No secret that surplus income ends up in the LAND market, because it is tax free. This money should be used in enterprise, not parasite activities, giving unearned income.

Cyclic depressions would be zero using full LVT & laws & control stopping monopolies keeping the free-market free.

Keynes was good at dragging economies out of depressions: printing money, etc, Firefighting methods. No firm FOUNDATIONS.

[bankingreform]

@NearAbbeyRoad We believe the foundations are a monetary system that works and that taxation is for redistribution, but it is not the foundation, money is the foundation.

We believe tax is a secondary reform, but while banks create money as debt, tax cannot solve the problem.

Interesting to share opinions.

Simon Dixon

[NearAbbeyRoad]

@bankingreform

Money runs on the rails, it is not the rails itself. It is the cement not the bricks.

Community activity, public & private, creates growth which soaks into the land crystallizing as LAND VALUES - economics not my view.

LVT reclaims this wealth for community services - Socialized wealth is socialized

No Income Tax, VAT, etc - Private wealth remains private.

Currently we do the opposite.

A STABLE system is created promoting enterprise - fruits of LABOUR are not stripped away

[zg76]

Great critics of current system, mostly good proposals, but in my humble opinion fail on money creation issue.

Monopoly is a problem in my opinion. Giving it to a small group of people, no mater how good intended they are, will certainly lead to failure.

Markets are only place where this should be solved, i.e. voluntary choice of all people.

If your system is so great and will bring stability, why do you need a gun pointed to us (e.i. state monopoly of initiation of force)???

[lifeformalien]

I for one would like a baconomy. "I promise to pay the bearer one pound of bacon" sound pretty good to me.

Brilliant upload, thanks.

[bankingreform]

@lifeformalien Next video - Is bacon the answer to our problems?

Thanks for your support.

Simon Dixon

[eachtem]

gold stardard will come back

[bankingreform]

@eachtem It will not fix the problem that banks create money, It will make people believe we have banking reform. There was a reason why it was left and it will happen again in the next depression.

We believe Gold will not solve the problem.

Thanks for sharing.

Simon Dixon

[eachtem]

a better solution is to march every single member who is an illuminatti and/or the royal families to the gallows, and strip those families for every penny

[DrGreenBud]

@eachtem I agree, Hang them for treason.

[repawnd]

Interest is like a cup with holes in it, the more you fill it the more it leaks. You need to keep filling it endlessly, the people who sell you the liquid (which they got for free using magic) are also collecting the spill from your cup and selling it back to you, over and over and over again.

The solution? Get a cup that doesn't leak, or stop drinking altogether.

[MENJAGVETJUINTE]

The title should say "their" time, not "there" time. ;)

[bankingreform]

@MENJAGVETJUINTE Changed. Thanks. Damn Dyslexia.

Simon Dixon

[americanbandwidth]

Great upload.

[bankingreform]

@americanbandwidth I am glad you enjoyed it.

We have some interesting times ahead.

Simon Dixon