The Best Solution To Fraudulent Banking System I Have Seen In Decade Of Research

I am glad to report at a time when the world is at tipping point of accepting peonage or violent instability with little hope of a means of a diplomatic revival of common decency I have had turn up via email today a submission presented to the British Independent Commission On Banking by a collective of monetary reform groups. I am glad to report that it is the best presentation of a solution I have ever seen and I think they have cracked it.

I beg everyone to read every word of it and give an opinion. I believe if widely promoted the Banksters cant fob it off without fully exposing themselves once and for all for the predators they really are and the correct people will take the so called ‘haircut’ . I will also include below the copy of the email the best document I have seen from the very horses mouth of just who those people are:

Positive Money’s Submission to the Independent Banking Commission

Dear Iain,

Positive Money, nef (the new economics foundation), and Professor Richard Werner of the University of Southampton,  have just made a joint submission to the Independent Commission on Banking. The Commission will be reporting back in September 2011, and the government should – in the absence of lobbyists – be prepared to accept and implement their proposals.

What Have We Recommended?
 

We’ve recommended the implementation of full-reserve banking for the UK, with power over the issue of the nation’s money supply kept out of the hands of both vote-seeking politicians and profit-seeking banks. It is a proposal that could be implemented quickly (comfortably within 12 months) and that would have huge benefits for the economy as a whole. It may not be perfect, but it would be many times better than any banking system that we have had in the last 500 years. Download the submission below and let us know what you think.

Download the ICB Submission here (PDF, 1.1mb)

But Will they Listen?

Is the Commission really independent? Will they be sufficiently radical to address the real problems, or just patch up the existing system? The signs so far are pretty encouraging.

Firstly, one of the members of the Commission is Martin Wolf, Chief Economics Editor of the Financial Times. Here’s what he had to say about fractional reserve banking (the current business model used by almost every bank globally) just a few days ago:

“The essence of the contemporary monetary system is the creation of money, out of nothing, by private banks’ often foolish lending.”
Martin Wolf, Financial Times, 9th Nov 2010

Martin Wolf has also been promoting John Kay’s Narrow Banking proposals and Laurence Kotlikoff’s Limited Purpose Banking, both ideas which would abolish fractional reserve banking. And guess who the other main proponent of these ideas is? None other than current Governor of the Bank of England, Mervyn King, whose take on the current banking system is pretty clear:

“Of all the ways of organising banking, the worst is the one we have today. …eliminating fractional reserve banking explicitly recognizes that the pretence that risk-free deposits can be supported by risky assets is alchemy. To work, financial alchemy requires the implicit support of the tax payer…For a society to base its financial system on alchemy is a poor advertisement for its rationality.”
(Mervyn King – download this brilliant speech here)

So if the top guy at the Bank of England, alongside one of the most respected economists in the UK, both believe the current banking system is ‘a poor advertisement for rationality’, we might hope that the Commission’s final recommendations do not simply involve patching up the existing system.

But most encouraging of all is the fact that the Commission’s remit already includes two proposals that would eliminate fractional reserve banking. Those of Kay and Kotlikoff both make it impossible for commercial banks to create money out of nothing through their “often foolish lending”. These two proposals were a late addition to the Issues paper, and we believe may have been added at the request of either Martin Wolf or Mervyn King himself. Fingers crossed that the Commission will be radical and make take on board the points outlined in our submission:

Download the ICB Submission here (PDF, 1.1mb) and let us know what you think by leaving a comment here.

Ben Dyson & Ben Curtis of Positive Money

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The below linked document is a speech by Delos C Johns President Federal Reserve Bank St Louis July 28 1952.

It is enlightening from go to woe. The sentence crossing pg 6-7 is the first official document from the FED itself that I have come across making reference to the ‘official families’ at the core of central banking. This document makes it quite clear that they knew and admitted even back then that fractional reserves were a confidence trick and that the system was in-fact one of prudential reserve from the get go:

http://fraser.stlouisfed.org/historicaldocs/1151/download/51955/johns_19520728.pdf 

 Finally I think we have something that monetary reformers the world over can focus on to build a consensus and set about acting upon in time to try and prevent the continuing crimes against humanity that the banking empire have inflicted thus far.