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AndrewLaintonEndogenous money theorists have been saying for years what the financial secretary for the treasury is saying“Whenever a bank makes a loan, it credits the borrower’s bank account with a new deposit and that creates “new money”. However, there are limits to how much new money is created at an...

19 hours ago

More MeditationWhat to you think of this article, naming the Bank of England as the culprit of the global monetary system and all the misery it brings? http://www.silverdoctors.com/s......

Yesterday
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Fran GriffithsAccording to The Encyclopedia of Money, the Promissory Note Act made such notes fully negotiable ie transferable if endorsed by the signature of the payee. Up till then the banks could refuse to honour them if presented by anyone other than the payee.The Bof E, and PM, describe the situation regard...

2 days ago

montmorencyI would also question that bit about interest rates, although those are the words of the BoE, not PJM or PM. What I am getting at is the true role of interest rates. Richard Werner writes very interestingly on this, among many other things of course....

3 days ago

PJMThanks, Damian. I've been searching on the Internet for a copy of the actual text of the Promissory Notes Act 1704, so far without success. Does anybody know how to access UK law statutes on-line? In New Zealand, where I live, all statutes are freely available for download. As far as I'm aware, ther...

4 days ago
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Is it possible to stop banks creating money? Or would shadow banks just take over?

FT alphaville public money

In a recent FT Alphaville article Izabella Kaminska argues that it is ‘naïve’ to attempt to constrain banks’ ability to create money, because this will only prompt other financial sector firms (‘shadow banks’) to create other forms of money that could be used as a substitute for money created by the state. Naturally, we disagree. Kaminska’s article misses some key points of economic history, and also overlooks other reasons why it is unlikely that substitutes for money will compete with state-created money.

Marco SabaYou have to monitor very strictly the international clearing systems. During a French investigation on Clearstream it emerged as much as 17,000 a/c UNPUBLISHED - many owned directly by central banks - for unclear purposes... it was (and it IS) mostly money laundering by the very same institutions th...

3 days ago

RJNo Bob would not borrow £500,000 to give it back to lloyds (or another bank) Bob would say use the money to buy a house. The money woudl then move to say Janet (the house seller) who may buy another house or invest the money with Lloyds or another bank. Maybe short term until she finds the right h...

4 days ago

plainmoneyUnder the PM system, suppose that I start with £500,000 in my transaction account at Lloyds, and I lend it to them at say 3% p.a. I move the £500,000 into my Lloyds investment account and I forego access to it. Lloyds has a customer Bob who borrows the £500,000 from them at say 5% and the money a...

4 days ago
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Increasing Competition in Payment Services (New Report)

competition in payment services

Since the crisis the government has been keen to encourage more competition between banks. Their main focus has been making it easier for people to switch their current account between different banks. But we think this misses a bigger opportunity: there is much more potential for competition from technology firms and mobile app developers, who could develop current/checking accounts and more user-friendly ways of handling your money and payments.

How the current process of money creation is causing a rise in poverty, instability and inequality (Video)

ben meaning conf

Ben Dyson, founder of Positive Money presenting at Meaning Conference 2014 on 18th November in Brighton. He got into the nitty gritty of how the current process for money creation is causing a rise in poverty, instability and inequality. And challenged the audience to imagine what a modern and sustainable system could look like.

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