Positive Money is a movement to democratise money and banking so that it works for society and not against it.
Our current financial system has left us with the highest personal debt in history, unaffordable housing, worsening inequality, high unemployment and banks that are subsidised and underwritten with taxpayers’ money. We believe that these problems have a common root: money.
What’s the problem with money?
Money affects almost every aspect of our lives, yet many of us have never asked ourselves key questions, like:
- Where does money actually come from?
- Who creates it in the first place?
- And who decides how to spend it?
You’ve heard the phrase ‘money is power’? Well imagine having the power to create money.
Right now the power to create money is mainly in the hands of the same banks that caused the financial crisis. The paper notes and metal coins in your pocket were created by the government and the Bank of England, but they make up just 3% of all the money that exists. The other 97% of money is just numbers in a computer system. And that 97% of money is created by banks, through a simple accounting procedure, whenever they make loans.
Most of the money that banks create goes into housing bubbles and the financial markets, with just a small amount reaching businesses in the real economy. This fuels many of the social, economic and environmental problems that we’re facing today, and makes other problems harder to solve.
What we want to do
We believe that taking the power to create money away from banks could give us a more stable economy, more jobs, lower personal debt and affordable housing. Our proposals explain how we can fix the design flaw at the heart of the financial system.
Who we are
We’re a not-for-profit organisation based in London (although we also work with partners around the world). We rely on a team of skilled and dedicated volunteers, coordinated by four full-time staff and operate from a small (and cheap!) office.
Our Board of Advisors includes economics professors, authors, entrepreneurs and people from the financial industry who know that something needs to change.
See Positive Money Founder, Ben Dyson, talking about the progress of the awareness raising about how money and banks really work and the progress of the campaign for monetary reform at the 3rd annual Positive Money Conference “Modernising Money”:
Listen to what MPs and former banker at HBOS have to say about Positive Money: