Positive Money NZ Campaign Launch, Wellington New Zealand
Sat, 15/10/2011 - 17:23 — smashdracs
Monday the 17th October 2011 from 6pm till 6:45
At Toi Whakaari: The NZ Drama School - 11 Hutchison Rd, Newtown - Drama 2 room
What's all the fuss about?
“Of all the many ways of organising banking, the worst is the one we have today” Mervyn King, Governor of the Bank of England.
Speech on 25 October 2010 titled "Banking: From Bagehot to Basel, and Back Again" - page 18.
The numbers in your bank account were created by Australian banks (and to a lesser extent Kiwibank), not by the NZ government. Hard to believe? Ask Martin Wolf from the Financial Times – as Britain operates under the same system:
"The essence of the contemporary monetary system is the creation of money, out of nothing, by private banks..."
Martin Wolf, Financial Times 9 November 2010
How does it happen?
In 1844 the British Government made it illegal for anyone to print their own bank notes.
Under New Zealand law the Treasury is the only issuer of notes and coins. But these laws haven't been updated to account for the fact that almost all money now is electronic.
Because of this loophole, banks worldwide now have the power to create money, effectively out of nothing.
What should we do?
We need to move from a debt-based financial system (fractional reserve banking) where virtually all of our money supply (98%) is borrowed into existence and bears interest, to one of full reserve. Fractional reserve banking requires permanent growth in the economy which is not possible in a world of finite resources.