September 2018 Release of our petition to have the Reserve Bank issue our money along with an opinion piece.

June Press release on the swiss referendum. Despite the campaign of confusion and fear run by opponents, 25% voted for the Sovereign Money Initiative.

April The AustralianRoyal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry is coming up with some serious wrongdoing by the banks and financial institutions

May 2017 Positive Money New Zealand issued a press release seeking clarity from the Reserve Bank on how our money is created. They still refer to intermediation by the banks, which is not how our banking system works.

5th November 2016 An article in The Guardian newspaper in England argued that abolishing debt-based currency holds the secret to getting our system off its addiction to growth.

5th September 2016 KPMG released a report, commissioned by the Prime Minister of Iceland, titled "Money Issuance" The report looked at money created by the Government.

28 March 2016 Bryan Gould agreed to be our Patron. Bryan is a respected commentator on economic matters, an author, academic and Companion of the New Zealand Order of Merit.

14 October 2015 The Finance Commission of the Dutch parliament discussed monetary reform.

22 November. The British parliament debated money creation last week, for the first time in 170 years. There was cross-party support for a proposal to set up a monetary commission

23 September. A new generation of young people, dubbed ''property orphans'' may be destined to be renters for life.

17 September. The Bank of International Settlements (BIS), the bank used by central banks, confirmed New Zealand houses are among the most "unaffordable" in the world compared to people's incomes.

25th April 2014 "Strip private banks of their power to create money": says the Financial Times' chief economics commentator Martin Wolf, who endorses Positive Money's proposals for reform

15th March 2014 - In a historic move The Bank of England quarterly bulletin explains how money is created. Whenever a bank makes a loan, it creates a deposit in the borrower's bank account, thereby creating new money. The bank says that this differs from the story found in some economics textbooks.

16th August 2013. The retiring head of the Financial Markets Authority apologised for the mistakes made saying "You were let down".


Reginald McKenna“I am afraid the ordinary citizen will not like to be told that the banks can and do create money. And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hand the destiny of the people.”

Reginald McKenna, as Chairman of the Midland Bank, addressing stockholders in 1924.


Incredible inflation

Allowing commercial banks to create the nation’s money supply has led to incredible inflation. Since 1980 the CPI has risen by 425% but that does not reveal the real extent of inflation. 

According to VNZ (Valuation New Zealand) figures house prices have risen by 1,394% in the same period (between 1980 and 2012).



Housing is just one example the how the flow of unearned deposit interest income into the investment sector produces price bubbles- as equities have shown similar increases. 

This inflation is not a ‘fact of life’ - it is a result of allowing banks to create all money as debt.

Firstly, there is a ‘cost-push’ effect on inflation: since all money is created as debt, then in order to have a money supply in the economy, individuals and companies must share the debt. In order to get out of debt or even just to pay the interest on ever-expanding debt, workers will always need to demand higher salaries, and companies will always try to increase prices by a little each year.

Secondly, there is the ‘demand-pull’ effect: as banks create as much money as they can in order to maximise their profits, this creates a debt-fuelled spending boom where businesses take advantage of the buoyant economy to raise their prices to recover from the previous downturn. In the case of housing, lax lending policies by the banks meant that people could borrow more and therefore ended up paying more. Uncontrolled creation of money by profit-seeking banks is the main cause of inflation.

While our figures for house prices start in 1980 inflation has been along for a long time. According to Reserve bank figures, what cost the equivilent of 2 cents in 1920 now costs over a dollar!




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