Banks, unlike private citizens, have the right to create almost as much money as they want out of thin air. This monopoly (which other parts of the financial industry don’t get) is why banks become too big to fail. In short, it’s the root of the instability in our economy…and that’s just the beginning of the problems it creates.
"I think it's clearly the case that UK has an economic model where every time we start growing, we tend to have a very significant house price inflation and a pile up of debt" , argues the former FSA chief Lord Adair Turner in today's BBC Radio 4 Today's program:
We cannot rely on failed regulators to prevent banks from abusing the power to create money, reads the article by Ben Dyson in Open Democracy, 19th May 2014
For decades we've allowed the power to create money to be used to blow up property bubbles and financial markets. Now it's time to use that power in the public interest, reads The Ecologist, 22nd May 2014