Financial Times: Pre-school lessons for the bankers

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Banks, and other financial services companies, may be allowed into UK schools to help teach personal finance, under proposals put forward by MPs, the Financial Times reported on 20th January 2013.

Here is a short extract:

Banks and bankers need to address their own educational needs before they are let anywhere near schoolchildren.

Their first lesson must be on what money is and where it comes from.

It’s an excellent article, it’s very much worth a read. Even the book Where does money come from? is mentioned and quoted.

Read the whole article here

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  • simoncz

    That the private banks create money is not new information.

    *
    It is not unnatural to think of the deposits of a bank as
    being created by the public through the deposit of cash representing
    either savings or amounts which are not, for the time
    being, required to meet expenditure. But the bulk of the
    deposits arise out of the action of the banks themselves, for by
    granting loans, allowing money to be drawn on an overdraft
    or purchasing securities, a bank creates a credit in its books
    which is the equivalent of a deposit. . . . The bank can carry
    on the process of lending or purchasing investments until such time as
    the credits created, or investments purchased, represent nine times the
    amount of the original deposit.
    9
    Committee on Finance and Industry, Gmd. 3897, Par. 74. (Otherwise known as the Macmillan Committee)

    I took this from ‘ Financiers and the Nation ‘ by Thomas Johnston ex Lord privy Seal published in 1934. The Macmillan Committee sat in 1931.

    • Peter J. Morgan

      Sorry, simoncz, the ‘multipier model’ is a description that’s been proven to have been BS!
      To get yourself up to date, you need to read the book “Where Does Money Come From?”, or better still, wait a few more days and you’ll be able to read the latest book from Positive Money — “Modernising Money”.

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