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What is Money?
Why is there never enough?
Or, Why is there so much, all in the wrong places?
An Introductory Talk about th...
Use Money, or, What is it that
we use?
An essential distinction
 There is a process which creates money or value, and man...
Money Created as Debt
The system was invented in England between 1688 and 1704,
now everywhere, exported through empire, r...
Consequences, 1
There is scarcely an evil in the modern world that is not created
or exacerbated by banks being privileged...
Consequences 2
 the system favours vast capital projects, small or local
development is disabled.
 the system requires c...
Consequences 3
Artificial markets are created and fed
 the ability of governments to borrow provides assured
clients e.g....
Reform
 Some want to adjust the regulations, so that
the system still works, but more in the public
interest
 Some refor...
Why Why Why? NO Reform?
Why do so few people discuss this?
 We are used to USING money, and that is where we pay
attentio...
Civil Movements for Reform
Some successful, some still trying, some a way to go, all
needed people to be prepared, to be i...
Is reform deliberately
opposed?
Strategies of opposition to all kinds of reform usually
include the following:
Ignore, Dem...
Possible Reforms
Remember, management of money, could continue as it does
now. Throughout history money has been created –...
Good ole Google
Michael Rowbotham, Ellen Hodgson Brown, Ben Dyson, many
more.
Positive Money, American Monetary Institute
...
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Money Creation

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A talk given to a local community after I realized that one I had no idea what money was, only some notions about ways to use it. A very brief account of what money is, the consequences, and what anyone can do to reform the current monetary system that disables so much of what many of us wish for. The verbal accompaniment to the slides, has personal and local detail, it can be found here: https://transitionalspace.wordpress.com/2016/10/11/why-we-need-to-know-what-money-is/

Published in: Economy & Finance
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Money Creation

  1. 1. What is Money? Why is there never enough? Or, Why is there so much, all in the wrong places? An Introductory Talk about the need for Monetary Reform Elspeth Crawford Comment to: https://transitionalspace.wordpress.com/2016/10/11/why-we- need-to-know-what-money-is/ Thanks to Positive Money http://positivemoney.org.uk, and Ivo Mosley http://ivomosley.com. for information, writing, references and many further links
  2. 2. Use Money, or, What is it that we use? An essential distinction  There is a process which creates money or value, and many other processes by which money or value already created is then distributed, exchanged, etc.  The latter processes intermediate money or value, but DO NOT CREATE IT. This is what we are used to, when we talk of ‘money’, we mean the way we use it, exchange it, store it, etc. These processes can continue.  The issue being discussed here is that of MONEY CREATION. WHAT IS THIS THING CALLED ‘MONEY’?
  3. 3. Money Created as Debt The system was invented in England between 1688 and 1704, now everywhere, exported through empire, ruling classes and power that recognized its usefulness.  one, it provides government with a way of borrowing money without asking anyone’s permission  two, those who had capital already (‘holding the bank’) could raise money for whatever they chose rationale – new money raised, and lent out, would be paid back later, at interest – a speculative risk (but can choose the safest project, not the most necessary.) This MONEY is CREATED from NOTHING, now it is digits in computers. Con trick, or trust the bank can pay?
  4. 4. Consequences, 1 There is scarcely an evil in the modern world that is not created or exacerbated by banks being privileged to create the money-supply. Here are a few of the more obvious, that are well documented.  money tends to end up in the possession of ‘capitalists’ – that is, people whose business is making money from the efforts of others, those in the financial industries.  a need for growth is built into the system: interest payments drain money from circulation and into capital so more money has to be made for production
  5. 5. Consequences 2  the system favours vast capital projects, small or local development is disabled.  the system requires certain conditions attached to loans, especially to aid to third world countries, so their sustainability is steadily destroyed in spite of aid programs or even because of them  capital cheaply created buys machines, human employees come with needs, rights etc., artificial advantage is given to machines or places where human labour is cheap. Employment is outsourced, unemployment is exacerbated.
  6. 6. Consequences 3 Artificial markets are created and fed  the ability of governments to borrow provides assured clients e.g. for the arms industry; and the ability of banks to create capital for assured markets then creates a ready supply of arms  the true costs of transport and energy can be hidden within ‘borrowing’ accountancy  power deserts elected representatives and lodges with money. ‘democracy’ favours a non-productive group – at the expense of all. …the impact on environment and people of all these effects.
  7. 7. Reform  Some want to adjust the regulations, so that the system still works, but more in the public interest  Some reformers want to change the fundamental laws Adjusting keeps the possibility alive of creating value out of nothing. Different political views want different kinds of regulation
  8. 8. Why Why Why? NO Reform? Why do so few people discuss this?  We are used to USING money, and that is where we pay attention, managing what we have, working, earning, etc.  Monetary Policy sounds difficult, as if we could not understand, as if we needed an economics degree  There are laws which support the system, and a multitude of regulations which make it work for short term use, so we can’t see a route to reform What is absent is motivation from those who have the power to make reforms. Why would they change what keeps the power where it has always been?
  9. 9. Civil Movements for Reform Some successful, some still trying, some a way to go, all needed people to be prepared, to be in a position to bring forward the necessary plans, know possible routes to reform U.S. Revolution Abolishing Slavery Populist Reforms Women’s Rights Labor Rights Civil Rights Environmental Protection Ending Vietnam War Occupy Marriage Equality Black Lives Matter
  10. 10. Is reform deliberately opposed? Strategies of opposition to all kinds of reform usually include the following: Ignore, Demean, Distort, Distract, Coerce, Co-opt, Divide- and-conquer, Outlaw, Abuse, Neglect. DOES IT MATTER if it is IGNORANCE OR DELIBERATE OBSTRUCTION? Become aware, be able to counter opposition
  11. 11. Possible Reforms Remember, management of money, could continue as it does now. Throughout history money has been created – the current method began about 1700… Positive Money: Take the power to create money away from the banks, and return it to a democratic transparent and accountable process American Monetary Institute: Under the Constitution, Article I, Sec. 8, our government has the sovereign power to issue money. N.E.E.D. Act proposed to reclaim that power. Other: Public Banking, Citizens Dividend, …all free of debt
  12. 12. Good ole Google Michael Rowbotham, Ellen Hodgson Brown, Ben Dyson, many more. Positive Money, American Monetary Institute International Movement for Money Reform New Economics Foundation Lobby representatives, Talk/Share Sign petitions, or create one.

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