Thursday, February 13, 2014

Propostas à esquerda:

What We Need

This is what we think needs to change to fix our broken money system:

1. Money should only be created through a democratic and transparent body working in the public interest.

We’d like to see the power to create money transferred to a democratic, accountable and transparent process, where everyone knows who has the power to create money, how much money they create, and how that money will be used. However this process is set up – whether it’s the Bank of England or a new committee that decides whether to create money, it must be accountable to Parliament and protected from abuse by vested interests. We also want to see safeguards that ensure that the right amount of money is created – not too much (causing bubbles and a financial crisis) and not too little (causing a recession).

2. Money should be created free of debt

3. Money should come into the real (non-financial) economy before it reaches financial markets and property bubbles

4. Banks should not be allowed to create money

In the short-term: Sovereign Money Creation

Sovereign Money (Cover)When we rely on banks to create most of our money, then the only way of getting more money into the economy – and allowing it to grow – is to encourage people to go further into debt. This is why UK government policy is focused on ‘getting banks lending again’ and encouraging people to borrow more for mortgages. But the financial crisis was caused by a huge build-up in private debt, so allowing that debt to increase even further could lead us into another crisis.
What we need right now is to have a way of getting extra money into the economy, but without relying on households borrowing even more. This can happen if the Bank of England creates money and transfers it to the government to be spent into the real economy (rather than the financial or property markets). Our Sovereign Money proposal explains how this could work, how it would lead to a boost in jobs and employment, and how it would make the current debt-fuelled recovery into a sustainable one.

In the Long Term:

Ultimately, we think that the economy would be more stable and society better off if we completely remove the power that banks have to create money. These ideas have been around since the 1930s, but we’ve done a lot of work to update them for the modern financial system. You can find out more below:

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