Positive Money – Part 2
Last week I posted that there are two particular proposals from Positive Money that I like. So now to the bad news.
Positive Money propose that the lending banks are not allowed to generate money at all. All necessary funds should instead be generated by the Central Bank (Bank of England). This would elevate electronic money, which is the vast majority of money – to the same status as bank notes and coins which have had to be centrally controlled in the UK since 1844. This sounds a good idea. Certainly it would prevent the unstable creation of new money, secure the taxpayer from failing banks, separate payment and investment, ensure transparency, remove (in theory) the power from politicians and bankers and in some way ‘democratise’ the creation of money. Continue reading
Positive Money – Part 1
PositiveMoneyUK is a website dedicated to solving the debt crisis. It has some very good ideas as well as some influential and knowledgeable members. I have been aware of this movement for some time – please pay them a visit.
We have recently had some constructive comments on my article on the Vickers proposals and on other suggestions made here. Rather than write yet another long essay hidden in the comments, I address some of the fundamentals here in a two Special Posts, both where I agree with the PM proposals and where I differ. So it’s a good news, bad news story. Continue reading
The Three Taxes – a review
Well there you have it. My recipe for recovery in my role as World Leader – The Three Taxes. Not imposed on banks in the conventional sense of attacking profits but on their principal activities – lending money and trading – to recognise their special position. In other words, to make banks part of the civilised world rather than taking us all for a ride. Because so far, banks have not been looking, listening or speaking but just carrying on as if nothing has happened. Continue reading
The market knows best?
This is the third of the guest posts by John Logsdon from readysteadygowebsites.com.
We are always being told that the market will decide. It may be the price of rice, oil or some basic commodity. This has become part of our economic DNA. If the quality from one supplier is too poor either the supplier will pull their socks up or another supplier will provide the goods. Likewise if the charges of one company are too high. either their prices will be trimmed or the consumer will move to another supplier. We have seen this work to the benefit in the production of everything from motor cars to cameras to ships. It ultimately enables jobs to be moved to low cost production environments which should enable more people to be employed and thus generate wealth. That’s the theory anyway. Continue reading
