Posts Tagged ‘Positive Money’

For anyone not familiar with the work of Ann Pettifor – one of the few to correctly call the coming of the financial crisis a number of years prior to it arriving, and one of the main proponents of the Jubilee 2000 campaign which cancelled a portion of third world debt – please search for her various articles, lectures and opinions online.

Associated with Keynesian economics and the Labour party, her views may be dismissed by some, however upon closer inspection, I was interested in her view on the creation of money, and what this meant for resolving the debt and economic problems facing the developing world.

She is principally part of the PRIME think tank/research group, which has a number of papers on its site proving an alternative voice on economic issues

The above lecture at the LSE discusses her latest book, ‘The Production of Money: How to Break the Power of Bankers’, and gives an insight into her theories.

What I wish to highlight, are the following;

  • The issue of commodity money, and how scarce resources should not be used as a basis of any monetary system
  • The recognition that a fiat monetary system, can and should be used for the benefit of the population – outside the control of private banks, but in the knowledge that an entirely man-made system should be used to achieve a level of prosperity in all societies
  • There are certainly many socialist aspects to these beliefs, such as exerting capital controls and spending money into existence in terms of health, education and social expenditure thus increasing national debt, however interest ideally should not be necessary when such a system is implemented
  • There are some similarities with what Positive Money are advocating, but it seems there are specific differences, as this discussion points out…

 

 

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Ever wondered what it would be like if the issue of commercial banks creating money were to be discussed in the corridors of the highest power in the land? Well here you are…not a great turnout it seems.

If you want to appease the masses, listen to them. But not too much.

Positive Money have been campaigning to raise awareness of this issue with MPs across the country, here is a response I received from a local MP, with the Positive Money email question template included at the bottom. Visit the positive money site for full results of all the responses gathered to see how much our ‘leaders’ are aware of this long running debate.

MP Letter

Commodity money is not the only alternative to the fiat based system. Where currently the banks have the greatest control over the supply of money, one suggestion put forward by the Positive Money group is to take this power away from them and rest it with an independent accountable committee.

Read their proposal here, written in easy to understand terms. A more technical guide also exists for more advanced readers. View the site below;

The Positive Money Alternative

Whilst it is worthwhile considering all work put forward in attempting to end this unjust system, and where no solution should seek to create a utopian world, the obvious problems with this proposal are as follows;

  • Fiat (non-commodity) money will still exist, albeit in a ‘controlled’ and debt-free form
  • How independent can any committee be, and the risk of manipulation will still be present from the government and parties close to the commercial banks.

However, some of the advantages are to be welcome, and work such as this greatly helps the discourse when it comes to theorising about an answer to the status quo.

Another example of how the truth hides in plain view, Standard & Poor’s give an account of the true workings of money creation and the system which dominates us.

See this link for documented proof of this as well as a host of other excellent resources from the Positive Money campaign group seeking monetary reform, educating the masses on the true nature of this system.

“Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist.” John Maynard Keynes