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.


Putting it all together

Putting this all together, we can create a checklist of criteria for a positive money system. Something that meets these criteria would be an enormous improvement on the current system.

A positive system of money and banking must:

  • not create excessive debt
  • be counter-cyclical (or neutral) rather than pro-cyclical
  • support the productive economy, rather than simply extracting wealth from it
  • not trigger asset price bubbles through positive feedback loops
  • require no government support (including explicit and implicit guarantees, deposit insurance, and bailouts)
  • allow badly managed banks to go bust or be taken over by more successful banks
  • be inherently stable and self-regulating (rather than being inherently unstable)
  • ensure that businesses and entrepreneurs are able to get credit to implement their ideas
  • not require manipulation of interest rates, but rather allow interest rates to be set by the markets
  • not require any subsidies, whether indirect (deposit insurance) or hidden (such as the privilege of the banks to create the money supply and collect interest on every dollar of bank deposits)
  • have a payments system that is insulated from investment activities, so that failed investments and insolvency of a bank does not threaten the payment system (and so that no bank can be 'too big to fail' or 'too systemic to fail')
  • be transparent.  Users of the banking system should be able to see how much risk they are really taking, and have access to investment products that meet their preferred risk profile and ethical principles
  • stop private interests (including banks) devaluing money for their own benefit;
  • spread the benefit of creating new money as widely as possible, rather than going to a concentrated group of people or companies




MoST Content Management V3.0.7525