Bill Still reports on the upcoming Parliament debate on the creation of money. It is the first time the subject will be taken up in over 170 years.
Of course, ever cynical after all this time, I have little faith that the very people who brought us unbacked credit emission (creating money out of nothing), will actually vote to change the system that benefits no one but the very wealthy who control the quantity of money, one can always hope, I suppose.
History: In 1490 the British Parliament passed laws allowing the explorers of the ‘New World’ to create bills of lading on goods they did not yet own in order to use them as credit. This allowed them to sell these as yet unfulfilled bills of lading in order to finance the building of their ships (many of which would never come back). These bills of lading were ‘credit’ for as yet undiscovered spoils procured from the New World. Sometimes they paid off, and the holder received just compensation, but many times they did not as the ships were never heard from again. However, the practice remained. Thus, unbacked credit was brought into existence and our monetary system has been based upon it ever since.
This is the root of everything that is wrong with our economic system; it is responsible for the massive wealth disparity and it is responsible for the relentlessly declining value of people’s hard labor.