About Money Reform?
Money reform or monetary reform is a term used by people who are aware of the central role that money plays within modern society and who are concerned that the nature of the money system that currently prevails within most modern industrialised (and developing) countries is not conducive to social harmony, economic equality or environmental well-being.
Our unreformed money supply
Many suppose that all the money in the British economy is created by government agencies (the Royal Mint and/or the Bank of England) in the form of notes and coins, which money in turn is backed by the tons of gold lying in the Bank of England. This is not true.
At the present time, less than 3% of the money in the British economy has been created by the government. The remaining 97% has been created by the private banking system. They do not create money in the form of notes and coins, for that would be counter-feiting, but their method of money creation is far, far simpler.
“The process by which the banks create money is so simple, the mind is repelled,” wrote the Harvard economist J K Galbraith. He described the fact that banks just write money into existence when anyone - an individual, a business or a government - borrows money from them, just by tapping a few buttons on a computer keyboard.
The problems with private banks creating 'computer' money are widespread. It is the fundamental cause of the big issues of today; climate change, third-world debt, personal debt. We have explained why this is the case in the 'money' section of this website.
A simple, sensible solution
The crazy money situation we currenlty find ourselves in could be very easily remedied if a publicly-owned body, such as (in England) the Bank of England , was responsible for creating ALL of Britain’s money supply, and if this money was spent into circulation as part of the government’s normal spending pattern. This would save us all a sizeable sum in taxes, which itself would increase the money available to buy the things we need without going heavily into debt as individuals, and the economy would have a debt-free money supply that would enable the real wealth creators to function without constraint. This solution would not lead to spiralling inflation (as many would have us believe), but is a viable solution to our debt-burdened world.