Posted from: Positive Money
Positive Money is a movement to democratise money and banking so that it works for society and not against it.Our current financial system has left us with the highest personal debt in history, unaffordable housing, worsening inequality, high unemployment and banks that are subsidised and underwritten with taxpayers’ money. We believe that these problems have a common root: money.
What’s the Problem with Money?
The money banks create isn’t the paper money you keep in your wallet. It’s the electronic money that flashes up when you check your balance at an ATM.
Find out How Banks Create Money…
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Sovereign Money Creation: Paving the Way for a Sustainable RecoveryBy fuelling our economy through ever-rising levels of household debt, we are repeating the mistakes that led to the 2007-08 financial crisis.
Ever since that crisis, the Government and Bank of England have tried to encourage further consumer borrowing via further lending by banks. As former FSA chairman Lord Turner put it, this was a “hair of the dog” strategy for economic recovery, treating the cause of the financial crisis – excessive borrowing – as though it could also be the solution.
However, household debt can only grow faster than salaries for so long before the weight of the debt becomes excessive. With household debt already close to its highest level in history, and set to rise further as a result of Government policy and easier lending by banks, we believe the current economic recovery is unsustainable. Just as the economy is running on borrowed money, the recovery is running on borrowed time.
There is therefore a need for an alternative strategy for a more sustainable economic recovery. This paper proposes this alternative, a new solution called Sovereign Money Creation (SMC).
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I-OPEEN is Sovereign Money Creation
based on filings of the
One People’s Public Trust
which makes you the Bank!