"The EU financial sector does not need to be eased, there is plenty of liquidity in the banks. Quantitative easing, as practised by the Bank of England and the US Federal Reserve, merely flooded the financial sector with money to the benefit of bondholders. This did not create a so-called wealth affect, with a trickle-down to the real producing economy.",writes our supporter from the Devon local group, Tony Pugh, in a letter in the Guardian, 25th Jan 2015 as a response to last week's announcement of quantitative easing programme by the European Central Bank’s president, Mario Draghi:
At the next Occupy Democracy General Assembly demonstration on the 24th January, alongside someone from the Positive Money Team I will be putting forward Monetary Reform (Democratising Money Creation/Full Reserve Banking) to be included in our Provisional List of Demands. This follows on from the workshop given by Positive Money’s Fran Boait which took place whilst being evicted en-masse from Parliament Sq. Here is her blog describing it.
NEW REPORT: Would stripping banks of their power to create money cause a shortage of money, high unemployment and an economic decline?
Some economists and commentators have claimed that Positive Money’s proposals for a sovereign money system, in which banks are not permitted to create money, would leave the economy with a money and credit supply that is rigid, inflexible and unresponsive to the needs of the wider economy. According to one critic, such a system would result in “a shortage of money, high unemployment and low economic activity”.