Sodium Haze: Tell the public about money creation

Thursday, 2 June 2011

Tell the public about money creation

For many years, if anyone had asked me the question 'who creates money in the UK?' - I would have thought of who printed the notes in my wallet and the coins in my pocket - I would probably been a bit puzzled by the question and said something like 'erm - the royal mint?' or perhaps 'the Bank of England'

It was only when I started learning about Peak Oil a few years back that I was introduced to the realities of how money is actually created in the UK and around the world as part of a global banking system.

I was astonished to learn that over 97% of all the money in circulation in the UK was created as debt when banks made loans - simply writing the new balance into a customers account.

I was further astonished to learn that using this method banks loaned many times the level of their initial deposits as loans - indeed prior to the banking crash of 2008 the average UK bank had just £12.50 on deposit for every £1,000 it had loaned.

I will in future posts talk in some detail about the inherent instabilities, hidden subsidies and inequities of a system that loans money into existence - but for now I have a few simpler questions.

Given that the vast majority of people in the UK have no idea that the nation's money supply has been effectively privatised and that they are subsidising this system to the tune of some £30 billion a year...

(a) Isn't it time they were told?

(b) Isn't it time they were ASKED if they want the nations money supply in private hands?

(c) Isn't it time that people were offered an alternative?

the answer of course is YES, YES, and YES.

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