For first time in 170 years, UK parliament to debate how their money is created

[JohnyCanuck]

One burning question to be resolved centers around determining whether it makes sound economic sense to continue to allow commercial banks the right to create most of the money circulating in the UK economy "out of thin air" when issuing interest bearing loans or mortgages to their clients.

UK Parliament will hold a three hour debate on the issue of ‘Money Creation and Society’ on Thursday 20th November. This will be the first time in 170 years that Parliament has debated money creation.

Approximate expected start of the “Money Creation & Society” debate is around 12:30PM.

The Money Creation and Society debate is being hosted by Steve Baker (Conservative), Caroline Lucas (Green), Michael Meacher (Labour), Douglas Carswell (UKIP), and David Davis (Conservative).

The backbench debate in the Main Chamber of Parliament creates an opportunity for MPs from all parties to learn about the issue, ask questions and deepen their understanding. As the results of our recent poll show, most MPs lack a sufficient understanding of money creation, leaving them ill-equipped to legislate on important policy.

We have produced a full briefing for the money creation debate that you can see here.

There are lots of important questions that Parliament should address during the three hours in the Main Chamber, these include:

Who should create money? Should high-street banks have the effective right to create money every time they make a loan, given the recent consequences for the economy? How should newly created money be used? Do we want banks to have the power to create money when this leads to unaffordable housing and financial instability? Should we have allowed the Bank of England to create £375bn with little scrutiny from parliament, and use this money to inflate financial markets? Were there better uses of this money?

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Watch the debate LIVE on Live Parliament TV. On Thursday 20th November you can watch the debate live online here

Approximate expected start of the “Money Creation & Society” debate is around 12:30PM. {7:30AM EST}

Source
http://www.positivemoney.org/2014/11/uk-parliament-debate-money-creation-first-time-170-years/

Check http://positivemoney.org for more videos and articles explaining how it is commercial banks create new money out of nothing at interest, examining the problems with this approach and recommending possible alternatives.

[Hoppy]

1. Whadafuxamater with them limeys?

Our gub'mint makes our money. Not our banks.

[ret5hd]

2. Uhhh...no.

"Our" money is made the same way theirs is, for the most part (i am not familiar with every intricacy of their system, so there may be some differences)

[Hoppy]

3. That's the point.

Our system is also out of thin air. Difference is, they are questioning it.

[JohnyCanuck]

5. I believe you are correct Hoppy

Congressman Dennis Kucinich's Briefing to Solve the Debt Crisis

Stephen Zarlenga
Director, American Monetary Institute

snip

Dr. Yamaguchi explained how real structural reform of our monetary system would solve the most intractable of America's national and local problems, including the budget and debt problems.

Using accounting system dynamics, he builds a dynamic model of the economy which identifies distinct economic actors, including the Federal Reserve System, households and government, and then computes the outcomes and cash flows between them over time. He then can see the effect of two different money systems: debt money issued at interest by banks when they make loans; and money issued by the government as money. He can see how the systems affect government's ability to pay off the national debt.

Dr. Yamaguchi's conclusions are astonishing. Regarding the present Keynesian debt-based money system where banks create money when they make loans of ten or more times the amount of money they have on hand:
This money system requires government and private debt to grow exponentially and indefinitely. Dr. Yamaguchi finds that it inevitably leads to either a Financial Meltdown, a Debt Default, or Hyper-Inflation. If the government attempts to reduce this problem by raising taxes and cutting services, then economic growth is paralyzed and unemployment skyrockets. The downturn further reduces government revenue, requiring even more cuts. The economy may remain in a recession for decades, assuming government debt reduction remains the goal, as the recent "compromise" between the nitwits indicates.

http://www.huffingtonpost.com/stephen-zarlenga/congressman-dennis-kucini_b_924004.html

[Skink]

4. Gold standard

Yes siree