schism [SIZ-uhm, SKIZ-] … the former the original pronunciation

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Where does money come from?




see also Bank of England Quarterly Bulletin 2014 Q1:
There are three main types of money: currency, bank deposits and central bank reserves. Each represents an IOU from one sector of the economy to another. Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves.
!g Most money is in the form of bank deposits “created by commercial banks themselves.”

The proposal Ole Bjerg presents in the TEDx Copenhagen talk may work in Denmark, and it would be great if it does. Elsewhere the way forward may be to raise public awareness of the issue so that the political will can develop to call for bank deposits to be backed in full by reserves at the central bank – at the Federal Reserve, in the case of the US.

It is past time to revisit the so-called Chicago Plan of the 1930s and explore full-reserve banking.





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a better story


from the article:
The first observation is the least original. It is the realisation that it is not strong leaders or parties that dominate politics as much as powerful political narratives.

. . .

I came to the second, more interesting, observation with the help of the writer and organiser George Marshall. It is this. Although the stories told by social democracy and neoliberalism are starkly opposed to each other, they have the same narrative structure. We could call it the Restoration Story.

. . .

Then – again with Marshall’s help – I stumbled into the third observation: the narrative structure of the Restoration Story is a common element in most successful political transformations, including many religious revolutions. This led inexorably to the fourth insight: the reason why, despite its multiple and manifest failures, we appear to be stuck with neoliberalism is that we have failed to produce a new narrative with which to replace it.

Read more »

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