On Sunday evening I went to a Hell hole in East London (an old pub made into what looks like the refectory hosted by the 1980s The Young Ones) called 'Passing Clouds' in Dalston, nr 'Ackney.
I went to see a film called 97% Owned (film below). It’s about how money is created – 97% of the money in circulation is simply created digitally by the banks. Not The Bank of England. But Barclays, HSBC, Nationwide etc
They do it to fuel their profit machine. I have absolutely nothing against profit. I have a lot against profit made by screwing the masses. And that is the way our system runs.
As they create more of the stuff and lend lend lend on houses no surprise that house prices have soared these last 40 years as lending has gone through the, er, roof. (Sorry!)
Positive Money is behind the film and is a pressure group trying to educate folk how our system really works (or doesn’t as the case may be). I have a lot of time for @PositiveMoneyUK set up by a young man by the name of Ben Dyson (http://www.positivemoney.org/). They have their hearts and minds in the right place. They see the primary problems correctly.
One of their main protagonists is @AnnPettifor with whom I debated ('debated'!) on The Today Programme (@BBCR4Today) on @BBCRadio4 a few months back. She wouldn't accept that #Capitalism sorted out the potential major Depression (that never was) from 1921. She never will even though it is a simple fact of history.
As banks create money and lend it to their favoured sectors THE BANKS create the asset and price bubbles. Not the Bank of England nor even the politicians. However, the latter two allow the banks to do it and they should ASAP reform the system to reign in the banks. Yeah, that’s going to happen.
However, though I wish Ben and his colleagues and supporters well, I shall not be getting involved (unless the situation changes) as I have issues with their thinking. (I guess I was also put of because Pettifor was in the film and she is very closed minded – or perhaps she just was live on national radio.)
They appear not to see that #Capitalism is the answer. They want to alter the system and create another system. So what’s the difference? They want an ivory tower grouping to decide on the level and type of lending. Well, sorry but that, to me, is the very definition of Marxism – whether that is how they intend it that is how it would play out.
No, let the market decide on interest rates and lending. That is the way to sort out house price inflation, costs of living inflation etc
I asked Ben about the market setting rates and he didn’t answer (couldn’t?). Their answer is regulate lending. No, Ben, that is Marxism.
Anyway, it’s a good film, if ever you get a chance. Or maybe it’s on their website or via Google.
They have something important to say and educate. Unfortunately they don’t realise (or maybe they do…) that their panacea is just as flawed as the current situation. They’ll win the support of quasi Commies and disenchanted. But they’ll never sort the problem EVEN if they win parliamentary support.
#BringBackCapitalism to sort out the ills of our economy and of our society. Let the market decide on interest rates, not the political appointee ivory tower merchants in the Central Banks.
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