The way money is created is at the root of the environmental and economic crisis. Most people do not know how our money is created. This includes the Treasury, David Cameron, George Osborne, our political and business leaders, so-called, EU Leaders and most economists. In particular the UK Coalition and EU leaders do not understand how this system needs to be reformed or how to resolve the current and inevitable future financial crises. Meanwhile millions of people suffer unemployment and needless austerity. These are the consequences of Neo- liberal austerity policies. The media give us a torrent of mostly depressing news stories but are silent on the need for monetary reform.
Do you know that 97% of our money is created by commercial banks “out of thin air” through debt, not the Bank of England or the Mint? This means that the commercial banks, not our government, control our economy. David Cameron and George Osborne, ignorant about the money system and terrified of vested interests that fund their campaigns, are powerless.
The debt money system making vast profits for the banks, increases the cost of everything, fuels the nation’s escalating debt. It also drives growing inequality, systematically transferring wealth from those who create it to a tiny super-rich minority. Making money out of debt increases the prices of homes, making them unaffordable for many hard working people and the young, whilst a rich minority benefit. The need to pay interest and repay loans drives unsustainable growth. Reckless speculation by banks contributes to boom and bust in financial markets that leads to regular financial crises. Our economy has become unbalanced, talented people being diverted from making things into the financial sector. The huge short term profits and excessively high salaries result in a brain drain into banking and financial services.
Under proposed reforms, commercial banks would be prohibited from creating money, that role becoming the sole responsibility of an independent commission acting in the nation’s interests as decided by a democratically elected government. Until that is done recurrent crises and mounting debt will continue. Of course there are vested interests who will do all they can resist reform.
Ordinary people, so-called, know that they are being ripped off by huge scam is going on; it’s up to us to explain how it works and encourage a mass popular demand for radical reform. Otherwise government will not implement radical system change and will continue to toy with fixes that will not work.