Tackling Peak Oil, Climate Change and Economic Breakdown
Ever wondered why we're all in so much debt?
Positive Money is campaigning for a simple solution.
Positive Money believes that we are in a crisis because so few of us, including policy makers, economists, journalists and ordinary people, truly understand how our monetary system works. This is a dangerous situation to be in when money drives almost all activity on the planet.
Unless we make significant changes to the way our banking and monetary system works, we will see further financial crises, rising debt and poverty, worsening inequality and faster environmental breakdown over the next few years.
The key flaw in our current banking system is that almost all money is now created by private banks as debt. In the words of Martin Wolf, writing in the Financial Times, “the essence of the contemporary monetary system is the creation of money, out of nothing, by private banks’ often foolish lending”1.
The fact that banks are able to create money – the numbers in your bank account – whenever they make new loans means that they have a profit-driven incentive to create far more money than the economy needs, pushing the cost of housing out of reach of most ordinary people.
It also means that if banks lose confidence and refuse to lend, then the economy is starved of money, leading to job losses and business failures.
It is impossible to have a stable economy whilst the behaviour of banks determines how much money there is in the economy.
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Wednesday 29th February
6 - 8pm
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