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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » Should Banks Create Money? Simon Dixon asks a member of the European Parliament

Should Banks Create Money? Simon Dixon asks a member of the European Parliament Should Banks be alowed to create money? Simon Dixon asks member of the European Parliament and economist Sven Giegol. One of those rare moments where an economists admits that there is no justification for the privatisation of money creation. You do not hear this too often. http


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25 Responses to "Should Banks Create Money? Simon Dixon asks a member of the European Parliament"

  1. Adriaan1950 says:
    Obama vs Ron Paul. A MUST SEE video for EVERYBODY on Gold for Money and your vote:
  2. goody1boo says:
    @sozfan1 We should have nationalized the banks back in 2008 and run them as non-profit organizations. New money should belong to the society. If any interest is to be paid, it should be paid to the people. Thus instead of taxation, we can use interest payments made by borrowers. To avoid deflation, treasury can print the interest amount, spend it so that there is enough money in the economy to pay principal + interest. When interest is paid back, it will be destroyed to avoid inflation.
  3. goody1boo says:
    Banks who create money out of nothing and pocket the gains have incentive and power to gain control of all industries via control of money supply. They withold loans to competitors during depressions (sometimes enginereed depressions), and they buy them pennies on the dollar. Their business establishment ends up ruling the world where profit become the only motiv. This establishment uses “interest” as the basis of it’s power. And they have incentive to attack Islam that prohibits interest.
  4. pirucreek says:
    full reserve banking is it and will change world!
  5. bankingreform says:
    @sozfan1 Or the government goes bankrupt when they cant afford to bail out the banks after their next credit rating downgrade.

    Simon Dixon

  6. sozfan1 says:
    Almost all of our politicians are bought out by big banks since the banks can create money. So, the only way we’ll get a debate on monetary reform is when angry mobs surround the capitol.
  7. bankingreform says:
    @1voluntaryist Thanks for your inputs.

    We disagree on a few things, but my mission is to bring forward the proper monetary debate so we can all be heard and come up with a monetary system that gives capitalism a chance.

    At the moment it does not.

    Simon Dixon

  8. 1voluntaryist says:
    Friedman & Smith have been improved upon. Read: “Democracy: The God That Failed”, by Hans Hermane Hoppe.
    Anything important should be private. Leave the unimportant to gov. Monopolies and cartels can only exist by gov fiat. Competing currencies cannot exist if gov is involved.
  9. bankingreform says:
    @1voluntaryist That is why government cannot be in charge of money creation.

    And you are right I cannot conceive a world without government, where would the police have come from in the London riots?

    I am a capitalist, but I am not foolish enough to think there is no role for government, even Milton Friedman and Adam Smith have a role for government.

    Money is far too important to be created privately on it’s own, competing currencies can operate alongside a system that works.

  10. 1voluntaryist says:
    Simon: “…a role for government…independent of politics…”??? Governments are political. That is their essence. Your problem is that you cannot conceive of a world without an authority figure. Read: Larken Rose’s “The Most Dangerous Superstition”.
  11. yakyakyak69 says:
    @bankingreform You can call yourself whatever you want.

    Reforming the problems of Fiat with MORE Fiat is INSANE!

    More of the SAME fiat is NOT “reforming” anything!

    Those who print the fiat can destroy the fiat by printing MORE of the fiat!

    Fiat debt based currency = Counterfeit debt-slavery… period!

  12. bankingreform says:
    @1voluntaryist Agreed with the separation of business and government, but a role for government is to implement a monitory system by law independent of politics and banks.

    Without that the free market cannot prevail. You need a monetary system that works. The only reason we have government and banking working together is because government having given the ability to create money to banks – it is privatised through debt, and it does not work.

  13. bankingreform says:
    @yakyakyak69 Definitely not a Keynesian economist, as a monetary reformer, I have to differ on your opinions on Fiat.

    It is a problem who creates the fiat.

    Gold is only necessary under a bank or government created money supply where conflict of interest always lead to the incentive to create more.

    Remove that incentive and gold is nothing but caveman money.

    If we are going to stick with the current monetary system then Gold will help, but still cause the inevitable upcoming depression.

  14. yakyakyak69 says:
    Keynesian FOOLISHNESS to the core!

    Trying to fix the problem of unlimited fiat debt-based currency with MORE debt-based fiat currency from another source?

    Fiat is Fiat no matter WHO prints it. When it’s ONLY backed by “faith & credit” instead of REAL assets, IT WILL FAIL once the corrupt realize that they can just print for themselves MORE money and UNLIMITED POWER!

    You are fooling NOBODY, but the corrupt who want that unlimited power!

  15. 1voluntaryist says:
    Simon: I’m not sure what you mean by “privatized”. If you mean some partnership with gov or gov regulated then I agree. Free market banking is the only way. Gov and business working together is fascism. Please don’t fixate on gold just because I used it as an example of a free market money. You should note that gold as money worked great until gov got involved. But without gov, with a separation of banking and gov, even better, a separation of business and gov, the world can progress untethered
  16. bankingreform says:
    @xchainlinkx I get that you are passionate and I get that you stand for a resource based economy.

    Just leave the swearing for other places if you dont mind.

    My mission is to create a money system that works, your is to eliminate money, maybe we will get there, but in the mean time I would like to create a money system that works.

    Thanks for your passion.

    Simon Dixon

  17. xchainlinkx says:
    no one should create money because money shouldn’t even fucking exist right now. you can give every human being food, water, shelter, and everything else they need to survive for free using the technology we have today. using resources wisely, you can provide abundant access to everything else in the world if people gave up the notion of ownership and shared everything. You don’t even use your car 90% of the time you have it. Fucking wasteful society this is…
  18. bankingreform says:
    @1voluntaryist Part 2 I have studies Austrian economics inside out. It is the best option under a debt based money supply, but we can do a lot better than holding back and patching up a system that is guaranteed to crash.

    I respect Austrians, but telling people Gold is the answer gives banks the authority to create money. I am a businessman and dont appreciate government intervention, but privatised money backed by Gold is disaster too.

  19. bankingreform says:
    @1voluntaryist Part 1 We had a Gold standard up until 1971. Our economy was not stable. We had full fiat after. Our economy was worse. That is because we have a debt based monetary system. Blaming fiat is not the problem. It was how money was created. We can return to Gold and we will have the same as before. Banks creating money and when they create too much government manipulating the system based on Gold supplies.
  20. 1voluntaryist says:
    Simon: I can go to any country and spend a gold coin. No law forces the exchange. How do you explain that? I have confidence in people to make the rational choices necessary for all exchange, not just commerce. Law is force. Force violates human nature which is non-violent exchange. Exceptions do not change the general condition of humankind and are no excuse for a system of rulers and ruled.
  21. AmhranaiAlainn says:
    Hi Simon. One question about debt free sovereign money creation. What effect would it have on international trade if a country chose to create money in this manner. What effect would it have on importing and exporting. Would exchange rates between debt based currencies go through the roof in an adverse way against trading? Is this where fair trade comes in as opposed to free trade?
  22. WezKitikonti says:
    @bankingreform no bank or government can create ‘debt free money’ that’s a Bill Still ‘Unicorn Idea’ so essence of the Bank Charter Act 1844 was to gain FULL control of the creation of promissory notes for the UK Population, they and ONLY they can now produce, paper or digital /electronic money, its not about who prints/creates money that right should be held by the PEOPLE, not with a ‘PRIVATE’ company, but how the BoE obfuscates these promissory notes ‘MONEY’.
  23. bankingreform says:
    @WezKitikonti Thank you for sharing. All promotion of reforms are very important, and I commend anybody that is moving the debate forward. In terms of recommendations I stand on the other side.

    I want to return to the essence of the Bank Charter Act 1844 to electronic money rather than just bank notes and have the BOE as the monetary authority over the creation of money rather than private baks to create debt free money.

  24. WezKitikonti says:
    @bankingreform We can only secure economic justice by spreading this information ambitiously, and thereupon, by asserting our right to proper, true economy, The recommended course of action is:

    1) to proliferate to the UK / world populous the understanding of MPE™ or mathematically perfected economy™;
    2) by act of parliament immediately transitioning to mathematically perfected economy™ thus removing the the Bank Charter Act of 1844, & 1694 and finally removing Bank of England.

  25. bankingreform says:
    @WezKitikonti Well said. Regulations patch up a system that will never work, but amazing to hear this from a politician right?

    Simon Dixon

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