Past meetings‎ > ‎2013‎ > ‎

2013/02 - Banking

Peter Verity from the Sheffield branch of the Positive Money campaign came to give us a talk about what is wrong with the current banking system and how it could be reformed.

The basic idea is that banks create money (in the form of electronic IOUs that can be accepted in shops, etc. as they are backed by the banks) out of nothing, by typing the amount into  a computer.
This new money goes into circulation until the point at which the debt is repaid, when it disappears again.

Two main consequences are:
  • Banks can choose how money is injected into the economy (on the basis of what will make them the most money back)
  • When banks lend more money, there is more money in existence (leading to a boom), when loans are repaid, there is less money in the economy (leading to a bust)
Positive money would like banks to be banned from creating money this way, with the power to create electronic money given only to the Bank of England (a public body), in the same way that it is the only organisation allowed to print Bank Notes.

What steps can we take?

1. Find out more
2. Change who you bank with
3. Join the Positive Money campaign
4. Tell your friends!