It might sound unbelievable, but for the last 170 years, parliament has ignored the question of how money is created. The last significant debate on the creation of money in Parliament happened in 1844! And even though money plays an extraordinarily important role in today’s world, most Members of Parliament still wrongly believe that only the Bank of England has the authority to create money.
We’ve just released our Annual Report. This annual report covers our forth full year of activity, from June 2013 to May 2014. It’s been an exciting and successful year - we grew in numbers online, offline, and in the team. We gained high profile support from the FT’s Martin Wolf and from Professor Tim Jackson. Policy makers and think tanks are starting to listen to what we have to say. By gaining more support and building a more robust funding model, it seems like we have established ourselves as a force that is around to stay - at least until democratic control and transparency over the creation of money has been established!
So far more than 1800 people have emailed their MPs about our Dodds poll which revealed that 7 out of 10 MPs think that only the government can create new money; and, only 1 out of 10 MPs know that new money is created by commercial banks when you make a loan. Labour MPs replied in a variety of ways and then they settled on the following as a standard response (in italics):
Our recent email campaign, sharing the results of a poll, which showed an alarming lack of understanding of how money works in Britain, received this reply from the Liberal Democrats, including Nick Clegg.