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.


Reserve Bank and the payments system

To stop banks being able to create money when they make loans, we make a few small changes to the computer systems at the Reserve Bank, plus a few small accounting changes. Once these changes have been made, banks will make loans by borrowing money from a saver and on-lending, rather than effectively creating new money (as they do at the moment).

More detail is contained in Solution - Detailed - Reserve bank and the payments system

Making loans

Making loans under full-reserve banking is very simple and mechanical - the bank simply takes money out of its Investment Pool and moves it into the borrower's Transaction Account.

More detail is contained in Solution - Detailed - Making loans

Ensuring stability in banking

The banking system under the modernised system would be significantly more stable than the current one, by reducing the sources of instability, and making the inflows and outflows of money from the bank’s lending business much more predictable.

More detail is contained in Solution - Detailed - Ensuring stability in banking.

Overdrafts and general liquidity in the system

Our economy is currently addicted to debt, simply because all money is created as debt. Full-reserve banking will provide a lower, more appropriate level of credit/lending to the economy, but first we have to make a smooth transition between our current high-debt economy and the new low-debt economy.

This transition can be made smoothly with additional loan finance provided during the years after the system is modernised. Switching to full-reserve banking will not create another 'credit crunch'.

More detail is contained in Solution - Detailed - Overdrafts and general liquidity in the system

Clearing the national debt

The modernised full-reserve banking system will make it possible to start paying down the national debt. However, the national debt needs to be reduced slowly and steadily in order to avoid causing any instability in the financial markets (which would hurt pensioners more than anyone else).

Paying off the national debt will mean that the pension funds and insurance companies which currently buy government bonds will need to find other investment opportunities, meaning that more money should be funneled towards real businesses and entrepreneurs, thus growing the economy.

More detail is contained in Solution - Detailed - Clearing the national debt




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