Reform the Monetary System:
Under our current system money is created by banks by the process of issuing far in excess of their deposits. Amazingly this is where money ‘comes from’. Banks make it out of nothing and distribute it through loans that they then charge interest on.
This debt-based monetary system drives four things: (1) economic growth as the need to pay back an increasing
amount of debt requires an increasing amount of economic activity (2) inflation as the money supply tends to increase faster than the volume of goods and services produced (3) instability because if the banks stop lending the economic system collapses and (4) inequality between countries as the currencies of a small number of nations have become the dominant “reserve currencies” around the world.
If the economy is to be stabilised then the money supply must be as well. How? Money is a public resource. Banks shouldn’t have the right to create it out of thin air and control money supply. These rights should be transferred to a public
authority such as the Reserve Bank. This public authority should decide the amount of money necessary to facilitate exchange in the economy create it debtfree and transfer it to the government to spend into existence. To prevent inflation government taxation and expenditure should be linked to the system of money creation.
At the same time communities should be encouraged to create their own currencies to support local economic activity.
At a Federal level we should promote and participate in a global negotiation to create a neutral international currency to replace the reserve currencies in use today. The US presently prints the money the world uses and gets a free ride from the world for it. The world needs a currency that isn’t tied to an individual nation.