Reform the banking and financial systems
"The banking system, and all its marvels, has been stood on its head. It is riddled with bad debt and has become a borrowing machine, not a lending machine. This is the economics of a lunatic asylum."
From a recent new economics foundation report titled "Where did our money go? which makes it clear that the banking and finance systems are not fit for purpose.
Governments of all colours refuse to tackle this fundamental issue, and the vast majority of NGOs have their heads in the sand about it, despite the fact that failing to address the problem severely limits social progress and actively damages the environment.
It could be argued that without reforming the financial and banking systems all efforts for social and environmental justice amount to little more than pissing in the wind.
In which case, we need to educate ourselves about what's happening and campaign for radical reform.
Janos Abel commented
In 1844 the government stopped banks issuing their own money. That law left a loophole that allows the banks to create pseudo-money called *credit* but should be called *debt*.
This type of *fake money* disappears when the debtor clears his account by giving the bank her/his *earned money* plus interest.
The outcome is that new debt has to be created continuously.
We must press the government to return to Pound Sterling as *currency* (it *circulates* indefinitely once it enters the economy).
This means that it must be made illegal for banks to create debt-money *masquerading as currency*.
In other words, banks will be obliged to return to their original service function of *safekeeping* peoples savings and acting as *brokers* between cash-needy and cash-rich customers.
A government which does not take this step is guilty of a dereliction of duty at least, if not of treason against its people.
tom hope commented
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tom hope commented
say no to gays it is acin the bible says
Please be more specific: the private banks have a licence to create money (positivemoney.org.uk) and landvaluetax.org would not be amiss either as it cannot be avoided and would allow to scrap income tax and make labour more competitive.
please watch this documentary an amazing insight into how the banks work and the reforms needed
simply we need to stop banks creating money out of nothing, thats right nothing, majority of money is digital, banks dont have the money saved up when you want a loan they simply type a few numbers into your account out of thin air thats why when a business goes bust and cant repay that debt the bank simply loses all and so prefers to invest in housing bubbles dramatically pushing house prices up were theres no risk . We are running our economy on ever increasing debt ,
and also at the moment banks dictate how that money is spent and like a bank invests in arms supplying dictators in conflict countries, big oil, not health care, education, or our enviroment creating a green economy as we would like
hi there jon theo i absolutly agree have supported positive money for a year now
there is something we can all do though right now move our money to more ethical banks, credit unions and so on
visit MOVE YOUR MONEY UK and pledge to move to create a better banking system
ive just moved from santander over to the co operative
Jon Theo commented
Copy of email to 38 Degrees team:
So now I am wondering if the 38 Degrees team has any awareness of this, the grand-daddy of all issues, and the inclination to tackle it yet...?
If you don't know what I am talking about then please view these videos - this is not conspiracy-theory rubbish, this is fact and law:
Money as Debt: http://www.youtube.com/watch?v=Dc3sKwwAaCU
Positive Money: http://www.youtube.com/watch?v=CrKV6bfqOck
The Secret of Oz: http://www.youtube.com/watch?v=swkq2E8mswI
Taking on this campaign is, of course, going to be tough. But then, so is life, if we leave it any longer. There is little public awareness of exactly why we have these economic issues, of what the actual root cause of them really is. Groups like 38 Degrees have the power to change that, but I wonder how many on the 38 Degrees team really understand this themselves.
I would humbly offer that it is the duty and responsibility of every person alive to truly understand our debt-based monetary system, the horrific consequences it has for everyone (except a tiny minority) and the relatively straightforward legislation needed to change it, before it is too late.
Once you fully understand the implications of fractional-reserve-banking and a debt-backed monetary system, it soon becomes clear that it is mathematically impossible for our economy to continue forever using this system. Sooner or later we will run out of resources, and when we do, it's game over, for everyone, including 38 Degrees and everything the organisation stands for.
Does it not make complete sense to use the immense influence you have gained to educate and garner support for the necessary legislation to steer us back from the brink?
There are already campaign groups set up to try to achieve this (Positive Money, NEF) but they do not have the tremendous support you have managed to build. If 38 Degrees were to join forces with them, we have a real chance for real change - forever.
This really is the biggest issue of the 21st century, bar none, because without monetary reform, nothing else can change: climate change, pollution, environmental destruction, war, resource depletion, poverty, and the destruction of the welfare state are all inevitable - because our economic system means we simply cannot afford to do it any other way!
It really does not need to be like this, and once everyone understands the awful truth of how money works hardly anyone would not agree with plans to change the system. It is only igorance of this issue which keeps us from the better, cleaner, wealthier and healthier world we ALL want and deserve. The tiny minority who stand to gain from the status quo will be as nothing compared to the masses who will demand change - when they realise what is going on.
They suggested I try here. Unless this capaign suggestion reaches no.1 - we are all doomed. How do you get people to open their eyes?
I urge anyone interested to tell everyone they know about this and get them to make the switch 2012 people power
well said, hi there veronica, so have you visited MOVE YOUR MONEY UK and pledged to move, ive just moved from santander over to the co operative unlike Graham my bank is bad news investing in mining companies displacing tribes people a bit like avatar the film, investing in arms tax avoidence
Veronica-Mae Soar commented
Hello again, I think there is a difference here between one customer's experience with his bank on a personal basis - i.e. no trouble - and whether or not a customer wishes to know about or care about or do anything about how ethical his bank is in world terms.
There are very few global organisations or businesses which are totally squeeky clean, However, if we have any concerns about those who are suffering from what they do, or the effect they are having on our fragile environment, then it is incumbent upon us to choose carefully and wisely who we do business with.
If enough people make "good" choices then the "bad" businesses will be forced to re-think their ethics.
well its certainly not propagada did you read it all why not switch to the co operative banking without guilty consious
im just saying that i havent had any problems with my bank thats all
NO WAY carl I am not a banker in any way in fact i am unemployed at the moment and was never a banker ok
mate this is fact got it from movey your money site your not a banker by any chance cus your having non of it
carl as i have all ready said they have allways been helpful to me I dont want to have an arguement but do you really believe all that you have said or is it just propogander against the company I have banked with them for over 9 years and NEVER had any problems with them
Arms and Humans rights
HBOS plc (a subsidiary of Lloyds) has been a principal banker for two arms companies: Babcock and Chemring. HBOS plc has also had shareholdings in BAE Systems, Rolls Royce, QinetiQ, GKN, VT Group, Cobham, Babcock, Ultra Electronic, Meggitt and Chemring. ⇒ Lloyds itself has invested heavily in Lockheed Martin, the US arms giant that has a long track record of making cluster munitions. In November 2009, Lloyds contributed $62.5m as part of a 12-bank syndicate when Lockheed issued bonds for a total of $1.5bn. ⇒
In 2009 Lloyds was fined $350million in the US over allegations that it had deliberately changed the identities of clients in Iran and Sudan in order to allow financial transactions to be processed from countries which were the subject of economic sanctions by the US government. ⇒ The company has also worked in a number of other oppressive regimes including Colombia, and Saudi Arabia.
⇒ Power and lobbying
Research conducted by the Swiss Federal Institute of Technology in Zurich found that Lloyds was the 26th most powerful company in the world. ⇒
Analysis of the relationships between 43,000 transnational corporations identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy. The researchers looked at the 43,060 TNCs and the share ownerships linking them and from that constructed a model of which companies controlled others through shareholding networks, coupled with each company's operating revenues, to map the structure of economic power. The research revealed a core of a of 1318 companies companies with interlocking ownerships. The researchers further untangled the web of ownership and found much of it tracked back to a "super-entity" of 147 even more tightly linked companies which controlled 40 per cent of the total wealth in the network. They found that less than one per cent of the companies were able to control 40 per cent of the entire network.
and thers more
Lloyds Group has an Ethiscore of 3.5 out of 20
Lloyds was another of the banks to receive huge amounts of tax pays cash, yet like the others it has failed to take a more ethical stance since receiving it. It's still investing in arms companies and paying out huge bonuses despite the best efforts of campaigners.
Pay and bonuses
Lloyds' new chief executive's pay deal was worth up to £13.4 million while Eric Daniels was in line for a bonus of £2million in 2011 ⇒ plus another £2m from a long-term incentive plan. ⇒
In 2009 a case was brought against Lloyds by a department of the UK Treasury (HM Revenue & Customs) on grounds of tax avoidance. Lloyds was accused of pouring hundreds of millions of pounds into transatlantic tax avoidance schemes in the form of loans to American financial institutions. ⇒
The Ecologist reported that the Lloyds group has had significant shares in Vedanta Resources plc. Vedanta was behind the controversial mine in India's Orissa state which was situated on a mountain sacred to local people. The company was given the go-ahead to begin mining for bauxite in May 2009. Campaign groups had warned that the 600-hectare mine would result in ecological degradation that would threaten the livelihoods of tribal people. They said that several villages had been razed to make way for the construction of a refinery, with up to 100 indigenous families evicted from their land and relocated to 'rehabilitation colonies' where locals claimed they felt as though they were living 'in a jail' with little access to land for farming. A nearby bauxite refinery which was already in existence had been blamed for causing health problems, damaging crops and killing livestock. ⇒
The Bank is also know to have had significant investments in Royal Dutch Shell and notorious mining company Rio Tinto.
Actually they have allways been very helpful to me