There is an easy solution to the financial crisis, but it involves exposing a problem that governments and economists have ignored for decades.
Much of the poverty in the world is due to the design on the banking system used in most countries, which allows 97% of money to be created by profit-making banks, and only 3% of money to be created by the government. Money created by the banks benefits the banks; money created by the government benefits everyone. This might sound difficult to believe at first, but it is accurate.
If we change this system so that money can only be created by the government (acting on behalf of the people), we could:
phase out national debt and significantly reduce corporate and consumer debts (in both the US and the UK)
reduce taxes by around 30%, permanently, or increase government services with no increase in taxation
find the money needed to solve the energy crisis
enjoy higher disposable income, or take more time off from work
avert the oncoming pensions crisis
wipe out the debt of poverty-stricken nations
Save 60% on the cost of public infrastructure projects (such as schools, hospitals and public transport), by removing the need to borrow this money and pay interest over 30 years
We are currently standing at a fork in the road. One road leads to poverty for almost everyone, while the other leads to greater wealth for everyone. Politicians and economists are taking us down the road to poverty, because they don’t know that any other option exists. If we want them to change track, and do everything that is listed above, then we – the public – need to show them that the other road does exist.
Start by reading A Quick Introduction to the Real Cause of the Crisis for a beginner-friendly explanation of the problem, the consequences, and the solution to the recent financial crisis and our current financial problems
The (proposed) Bank of England Act 2010
And see Ben Dyson and James Robertson
