Firstly, we need to take the power to create money away from the banks and return it to a democratic, accountable and transparent process.
History has shown that when banks have the power to create money, they create too much in the good times, causing financial crises, and too little in the bad times, making recessions and unemployment even worse.
They put most of the money that they create into house price bubbles and financial speculation, and only a small amount into businesses outside the financial sector. We simply don’t think that we can trust banks, who are hardwired to chase short-term profits, with something as powerful as the ability to create money.
And it’s not enough to regulate them; regulators have repeatedly failed to keep banks under control. There’s no reason why they should get it right this time around.
But we can’t trust politicians with the keys to the printing press any more than we can trust the big banks.
Instead, we need a new committee that decides whether and when to create new money.
This committee would need to be accountable to Parliament and sheltered from vested interests.
They would ensure the right amount of money is created – not enough to cause bubbles and a financial crisis, but not so little that it causes a recession.
Positive Money
See also the AMI-Kuchinch bill, HR2990, Sec. 302, ESTABLISHMENT OF THE UNITED STATES MONETARY AUTHORITY, Sec. 302, Establishment Of The United States Monetary Authority
