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Debate on Money Creation in Parliament – Get ready to act

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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.

CHRIS hEYWOODI cannot understand why people are so reluctant to consider an alternative to our present system of money creation and distribution when the present one is so obviously failing. To say that banks are not responsible for the amount of money in circulation is to deny economic fact. When banks make loa...

3 days ago

solutreanPost reform, the PM proposals merge with the old system to a large extent. How can you say that the system can't be easily changed when by your own admission you haven't even read the book 'Modernising Money'? This book explains how it CAN be done....

3 days ago

RJit can't be easily changed. Company profits depend on it. And our saving depend on it (debt has two sides an asset = money or Govt bonds and a liability = debt). The current system is good but we elect the wrong people to administer it. But it is still in our hands. Unlike Euro countries that have ...

4 days ago
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RJAusterity is unnecessary (and economically bad for the UK). Its based on a flawed belief that monetary sovereign Govt are just like households. Read any MMT site. Especially Warren Mosler. I don't agree with all but he does understand how tehe treasury system operatesGovernment $deficit = non govern...

3 days ago

SimonRJ have a look at my reply to you on the "Printing Money : Good!" post. Are you suggesting that the government has an account at the B of E which they use for transactions ? They still have to get money in from somewhere as I describe elsewhere before they spend, so in that sense they are not creati...

4 days ago

RJReserves are BoE reserves. They come from Govt spending mostly. And agree our money is created by the commercial banks (from loans but also from GOVT SPENDING. The bank JE is DEBIT BoE Reserves CREDIT a Bank account when the Govt pays someone). But there are different types of money. Level one money...

4 days ago
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Gregory SchoenmakersEven if the government issued the money directly, it would still be a debt for the government. The difference is that like the BoE, it wouldn't have to redeem these IOUs for anything; they just call it "legal tender". (It is different for private banks which must be willing to redeem their created b...

3 weeks ago

Gordon BrooksThat brings up the question, though: if the Bank of England is, in fact, part of the government, then why does it issue money as debt? It makes absolutely no sense for a government to sell bonds to itself....

3 weeks ago

Gregory SchoenmakersThe BoE is a nationalized central bank meaning it is part of the government. So any money owed by the government to the BoE is just money owed by one department to another. That doesn't mean that buying up bonds is a good idea. It is sending newly created money to the wrong places - the very rich....

3 weeks ago
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