The power to create money

The documentary The Secret of Oz  shows that the power to create money has always been an important topic in human history. It gives a clear explanation of the existing monetary system and its background. Sometimes governments had the power to create money, sometimes banks. For centuries politicians and bankers have been fighting for the right to create money. Nowadays money creation is a kind of secret topic. I think this has to change to solve the crisis. This quote of James Garfield, the 20th President of the United States (1881), shows us why:

“Whoever controls the volume of money in our country is absolute master of all industry and commerce… and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”

Nowadays 97% of the money in western countries is created by commercial banks as a debt. In other words, private banks control the money supply. Many people don’t know this. This is in itself already strange and undesirable.

I expect that in the next few years more and more people will decide that money creation by commercial banks is the root cause of the crisis. For me, it is clear that democratic governments should have the right to issue their own money. They should not have to borrow money (from investors and banks with interest), but have the right to create their own debt-free money. This is sovereignty. Money creation by private  banks makes that the we are in debt all the time.

I do recommend to investigate money creation and to join the discussion. For example first you can watch the documentary The Secret of Oz and then read the books Where does money come from? (2012) and Modernising Money (2013). You can also check the websites of Positive Money (UK), Sensible Money (Ireland), Monetative (Germany) and Ons Geld (The Netherlands). A lot of information is already available.

In short, the money system is too important to leave it to politicians and bankers only. Money expresses our social relationships, so we all have to know how the money system works and what alternatives exist!