Don't you agree? – Even if the system were working fine, shouldn't we still learn at school where money comes from?
Well ... the system isn't working fine, and we don't learn where money comes from. Maybe those two facts are connected?!
Here are the three big questions:
1.) Who creates our money?
Is it private banks? Is it for the common good?
2.) Are investments kept separate?
From Positive Money's article on the EU banking sector:
Are the investment units really separated? Or is it just an accounting fiddle?
Look out for phrases such as "separate ownership" and "separation of operations". They are good signs. "Separate accounting and reporting" on the other hand equals "fig leaf".
3.) What about infrastructure for basic transactions?
Is it independent of major banks? If not, that's "a bit like making the question of whether we want to have roads dependent on the health of Toyota." (ibid.)
If the answers to these questions are 1: private, 2: no, and 3: no, that spells 2 big 2 fail, which Swiss national news recently confirmed in a 5-year-crisis anniversary recap still isn't fixed! Whether or not we have another financial meltdown with subsequent bailout is purely at the banks' discretion, not due to any successes of regulators! See What is a bailout?
Our PDF How banks (don't) work is an ideal tool to help in any misunderstandings. Unfortunately, it's perceived as radical to even address the topic. Therefore, some educators might prefer the "clean" version without the box on Sovereign Money (also available as A5 booklet and A6 booklet).
From our petition: "It's a waste of time to debate monetary policy without taking into account how money is created."
That said, we of course have utmost respect for people working to fix secondary issues such as these:
(in no particular order)
- Despite some successes (Isle of White, Switzerland), tax havens are still going strong. Unflappable activists continue their work with next to zero reporting...
- There's still a house in Delaware with 200 thousand businesses. Little to no transparency – even for those who benefit. It isn't just Liechtenstein, it's everywhere: in our coffee, our food, on our TVs, building and bombing our roads...
- A lot of debt still ends up with the weakest countries. It flatters us to think that "those poor countries" are dependent on our help. However, it can be less flattering to try and grasp why they are poor. Especially when they are in fact staggeringly RICH, and it is US WHO DEPEND ON THEM.
- Coffee: grown in the poorest countries, value-added in the rich (on top of which: chain-stores like Starbucks can divert profits to tax havens, see above)
- Fertile soil: if it hasn't already been eradicated by cotton mono-culture we profited from
- Sunlight: e.g. Greece (EU instigated protectionism against cheap solar cells from China)
- Columbite–tantalite, a.k.a. coltan, mined in Congo, used in our batteries
- Rare earths (for flatscreens)
- Gold (e.g. recently war-torn Mali)
- Water (supposedly there's a huge reservoir under the Sahara!)
The information is out there for those who look!
by Michael K for Banks need Boundaries!