Our Nation's Money
The situation around money is quite exceptional. The public's perception of where our nation's money comes from, believing it comes from the government, is wrong. Yes a tiny part, the cash part, comes from government but that portion, about 3%, is insignificant. All the digital money we use is created by the private banks. It's our national money, yet private actors have been given the power of producing it for our economy. Think of it. The New Zealand dollars we all must have to participate in the economy are supplied by private banks who decide who gets how much and who doesn't. Is that democratic?
Let's look a little further. That money, our nation's money, is issued to us as a debt that we must repay. In other words, we may as well call it our nation's debt. Our money is debt, but why is that debt owed to private entities who produce it "out of thin air" by tapping a keyboard? And this debt has interest attached, which means that the debt grows over time, increasing beyond the capacity of the people to repay it. Indeed, the total debt owed to the private banks today is far greater than the total money supply. The debt cannot and will not ever be repayed. So we work to repay the unrepayable debt to private actors who have done virtually nothing. How can this be?
The reason is that people just don't know. Somehow, we've been indoctrinated to never question the source of money. The result is everwhere evident: inequality, poverty, homelessness, environmental degradation, crisis. Our challenge is to dispel the erroneous thinking around money. If society knew the truth, the private control of our money would end. The people would demand that the government assume control over our money supply and soon the financial solution to our myriad problems would be available. No more debt.
We need money. We don't need debt. Debt distorts the economy. It makes it run inefficiently, squanders natural resources, spawns a rat race that wastes human potential, and greatly enriches a few at the expense of the many. It's clear that society would reject private production of our money given that everyone deplores the inequities that are the result. So tell your friends. Recommend this blog and the Positive Money website. Let's work to end private control of our nation's money.
Change money, change the world.