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Reform of the Financial System

It is becoming increasingly clear that something is amiss in our financial world. How can it be when small business and the majority of the population struggle with an uncertain economic future, financial institutions rake in record profits? What are they doing that is so productive? Well the answer is hidden in plain site: they “write their own cheques” to themselves, they create money (out of nothing) and lend it out as interest bearing debt to the borrower.

This has been discussed, indeed exposed by a range of insightful economists and thinkers over many years, yet the web of deception perpetrated by economic orthodoxy and its proponents (most politicians and most media as well as numerous “think tanks”) continues to be perpetrated in the minds of the public.

The consequences are proving increasingly dire for society and the planet. To meet the ever increasing burden of debt to the financial system economic turnover has to increase, individuals must work longer hours (if they can) and societies are forced to privatise assets formally held for the public good. The mantra of “growth and jobs”, repeated ad nauseum by most political persuasions has become core purpose of government policy, however detrimental to the environment or social wellbeing.

In the absence of better knowledge, errors in public policy may be forgiven. Adhering to failed policies in the light of better knowledge is foolish at best. Insisting on failed policies that cause economic harm, damage the environment and undermine civil society is a crime.

A contribution to this discussion with possible ways forward has been made by Dick Clifford (Member – Economic Reform Australia and Past President – Humanist Society of South Australia)
and can be downloaded here. Well worth a read.

Bernard Thomson