“It is time to take action. In a world where everything evolves around money, we can only make a difference by coming together”
The quotes comes from Dutch cabaret performer George van Houts. Van Houts started a highly successful theatre play called: “The tempters – Taken by the Bank” (W) in The Netherlands.
All actors involved with the play started a ‘citizens initiative’ called OurMoney. Have a look at the VIDEO – What Is Money? and read Bank of England’s: “Money creation in the modern economy” by Michael McLeay – PDF.
Van Houts ‘initiative’ demands answers from the politicians, in which already has been signed by 65.888. A threshold of 40,000 signatures was needed to get the issue on the agenda of the Dutch Parliament. This exceeded after just over 24 hours. Houts: ”The housing bubble, the massive unemployment and growing inequality that are largely caused by the way money is created by the private commercial banks, are issues that need to be discussed and negotiated before it’s too late.”
On Thursday 20th November 2014 over 30 MPs took part in a debate in the House of Commons in the United Kingdom on money creation and society. This was the first time in 170 years, since the Bank Charter Act in 1844, that the topic has been fully debated. Money Creation & Society’ Debate in UK Parliament – VIDEO (Highlights).
British Conservative Party politician Steven Baker uses in his debate: ”It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning”, a quote attributed to American industrialist Henry Ford – the founder of the Ford Motor Company.
What Steven Baker didn’t know that this was more of a paraphrase then an exact quote from Ford, because it was attributed to Henry Ford by Charles Binderup (March 19, 1937).
Nevertheless, have a read through the following articles and connect the dots for yourselves:
Mark Carney warns ECB QE could fuel risk-taking – Davos 2015 live (theguardian),
ECB expected to inject up to €1 trillion into eurozone (BBC), De-Dollarization – (BRICS),
Berlin v Frankfurt Tensions are rising between Germany and the European Central Bank (Economist),
1700 private jets expected to Davos in Switzerland to discuss climate change at World Economic Forum (Flight tracker),
“De-Dollarization” US Dollar Deepens (Zerohedge), We are trapped in a cycle of credit booms by Martin Wolf (FT),
What Really Happened At The SNB Yesterday (zerohedge),
Russia’s “Startling” Proposal To Europe: Dump The US, Join The Eurasian Economic Union (zerohedge),
Is Putin Creating a New World Order? Oil Price Blowback (counterpunch),
Brazil, Uruguay move away from US dollar in trade (RT),
Russia and China seal historic $400bn gas deal (RT), Moscow to Beijing in 2 days: China to build $242bn high-speed railway (IB).
It is fair to say we are still in a deep recession, also getting personally more and more the feeling that the politicians nor the banks have a clue what they are doing (Listen to Rainer Voss – VIDEO), that the whole world should just get a copy of Thomas Piketty’s “Capital” in their mailbox, Russia and China are moving forward, and some of the major five emerging national economies as well. As they are in a process of a new form deal making with one another, and that “old Europe”, and the United states (UsDebtClock), both economies (so as everyone else), create more currency through government bonds.
The initiative to create more currency comes from the Federal Reserve Bank and the BIC. Once these institutions have decided that more notes are needed, it asks the Treasury in the US (for which the Treasury charges) or ECB in Europe, to print them. The normal way these bonds get into circulation, is by the commercial banks, converting into currency, in which some of the reserves are obliged to lodge with the Fed again.
Welcome to the world of – Modern Money Mechanics. Modern Money Mechanics is a booklet that originally published by the Federal Reserve Bank of Chicago in editions ranging from 1961-1992. The last revision, made in 1992, was only published in 1994. Please read the 40 page booklet here.
Keep in mind, the Modern Money Mechanics booklet does not in fact have much to say about “currency creation” but concentrates on what it calls “money creation”. It draws a distinction between “currency” and “money”. And this takes place through these government bonds, and can only come to existence through debt and/or loan. So the banking system does not create money to lend out of thin air but can only lend out money deposited with it and then only when economic conditions permit it.
This happens in Europe and the US through the European Central Bank (ECB) at the Eurotower on the Neue Mainzer in Frankfurt, Germany, and at the main office of the Board of Governors of the Federal Reserve System at Marriner S. Eccles in Washington, D.C. (10 Central Bank Buildings) (List of 60 members of BIS).
American independent filmmaker and social activist, Peter Joseph, known from the Zeitgeist film series explains the “money creation aspect” NOT the “currency creation” aspect really well in this 12min video —- VIDEO HERE—-
IMPORTANT NOTE WITH VIDEO: the banking system does not create money to lend out of thin air, but can only lend out money deposited with it. This only when economic conditions permit it.
More:
Third Basel Accord, Basel Committee on Banking Supervision – PDF,
The Dodd-Frank Wall Street Reform and Consumer Protection Act’ – PDF,
Andrew Jackson and Ben Dyson’s Modernising Money: Why Our Monetary System is Broken and How it Can be Fixed (Book),
Jesus Huerta de Soto’s Money, Bank Credit, and Economic Cycles Hardcover (Book),
Positive Money – is a UK, not-for-profit research and campaign group to democratise money and banking so that it works FOR society and not against it.
Sharing=caring! Over-and-out.