‘Positive Money’ have a decent idea. Money should be created with the consent of the public. Governments that have served the financial sector must look instead to serve the public.
In this endeavour they want to set up a commitee to create it – rather like a Monetary Policy Commitee with extra powers, although in this case directly answerable to Parliament.
They point out that creating money is absolutley essential to society. It is.
And at the moment the big banks that create about 90% of it are self serving and do not have any view of how they should serve society. True again.
There is little doubt that Banks tend to create crises because they are so all embracing – every financial possibility is considered to be also their interest. The ill conceived idea that they should be kept absolutely as they are is rather like planting one variety of potato and supposing that blight will affect only an infinitessimal amount of the crop. You’d have to be delusionally confident or else just simply lucky. This is not a policy.
So Positive Money suggest that creating money should be considered one of the ‘separate’ powers: Legislature, Executive, Judiciary – and Money Creation.
This is certainly an arguable case.
So create the money independent of private PLC banks. Itself an interesting idea.
But if money creation is a separate power shouldn’t taxation be a separate power too? Or is there too much concentration on the money creation at the expense of the money destruction?
Should we further revise the Separation of Powers to give us the Legislature, Executive, Judiciary, Money Creation, and then also Money Destruction (this means, in effect, Taxation).
Yet shouldn’t the Department of Money Creation and Department of Money Destruction -surely basically the same department, perhaps be merged?
If they should, then surely we end up with Parliament? They’re in charge of tax and spend – or as we now know, spend and tax.
Parliament’s members are the people who really need to know where money comes from.
Positive Money propose doing another survey of MP’s, which is certainly good news, but is it not also time for an Ofsted style report on all prospective MP’s? Surely if MP’s are unaware of where the nation’s resources come from they shouldn’t be allowed to stand?
And of course Positive Money need themselves to understand that ‘Positive Tax’ is their corollary and also equally essential –indeed perhaps more so.