I have been contributing to a ‘Positive Money’ paper on the Covid-19 consequences.
I have no idea if it will be accepted but I thought it would be interesting to discover how they are becoming much more ‘government money creation’ friendly!
Indeed I think they suggest that they probably always have been (and, actually who now isn’t?) – it was just that their creation was in a rather undemocratic and bureaucratic way.
But I think change is afoot….
So here is part of my – possibly argumentative – contribution…. have to say that there is no opposition on the principle – just some disagreement on the system..
” I suggest if you want to regain control from bankers then we really have to take the view that government creates money when it spends. The fact that government has usually chosen often to work in another way (as Positive Money suggests) is really simply an indication that they have been ‘captured’ to keep money in the hands of a few. You can tell how nervous the government is when they keep wanting to get the economy ‘started’ again and say things like we cannot afford to look after everybody – that’s their actual job! And next time we want them to know that we know – no dispute – that they always have the money to do it. Resources could be short – but they always have the money…
We have seen that when the other lot get in they get told certain things are impossible and end up thinking they’re running a town council not a sovereign currency.
Unless you speak up loud and proud the way it is – even if people have previously sometimes chosen to work in different ways, you end up promoting the idea of trickle-down and that money comes from rich people’s taxes or, indeed from the decision of a central committee of the Bank of England.
My view is that if I’m trying to promote change I don’t want bankers anywhere near those changes – they have already been very effective at using the financial system as a choke point to feather their own nests – and how. The few bankers that have been prosecuted have almost invariably got away with it.
So I really do want the politicians in charge even when I know what Johnson is and has said in a press conference and so, indeed, has the organ grinder. If Johnson doesn’t end up in jail he will at least be out of office (and judging by the number of Tories already speaking out, probably sooner than many think) and until bankers start standing for election we have in my view, now even more imptortantly, to put up with and also to try and repair our broken democracy.”
We have to start to realise that Money is actually for government purpose.