When our monetary system drives most of the activity on the planet, it is important that we understand it fully. We are always looking for people to get involved.
Start a Discussion
There's no simple way to describe the problem but we try to highlight it whenever we can by explaining it by getting across the main points:
Money comes from bank loans and every Euro has a corresponding debt. Reducing our debts reduces the money supply by the same amount. For this system to run smoothly we need to take on more debt than we repay. However, since mortgages have reached their natural limit so too has this system.
Full reserve banking is one solution which is sensible on so many levels. You can start a discussion on any website relating to the monetary system. This includes commenting on newspaper articles etc.
Organise a Talk?
We're happy to give evening or daytime talks on how our economy operates, and how we may implement a better system.
These talks can be of an informal nature and venues may include bars and cafes etc. We have also done presentations in lecture theatres, libraries halls etc. and anything in between.
We obviously adjust our talks to our audience and no prior knowledge of economics is needed.
To organise a talk e-mail Paul Ferguson at email@example.com
Inform Your TD
Naturally not all our TDs go into politics having studied economics. The current system of fractional reserve banking is so misunderstood and our proposal can't be explained quickly even to those with a background in economics.
With this in mind we see little benefit to informing most of our TDs.
We would advise contacting the following TDs in particular and keeping any correspondence brief and concise. The merits of full reserve banking are rarely discussed even in economics circles so assume our TDs have no prior knowledge.
Leo Varadkar doesn't have a background in economics but he's certainly as knowledgable and vocal about the economy as any TD. He also has a genuine desire to help solve the debt crisis. His opinion is respected and if he fully understood how our economy operates we're sure he'd be influencial in helping to promote discussion on reforming fractional reserve banking.
Peter Mathews studied commerce in UCD and is an expert on banking. He has mentioned 'fractional reserving' in debates and pointing out the consequences of such reserving should be straightforward. He is a very knowledgable man and it would be great to have him on board.
Shane Ross has worked as a stockbroker and is the business editor for the Sunday Independent. He has written tirelessly about the reckless lending of bankers, not least in his book ,'The Bankers: How the Banks Brought Ireland to its Knees'. Of course an economy can't lose money through reckless lending and banks can't but have someone default.
Stephen Donnelly has been very enthuisiastic in analysing the debt crisis and the Troika. He has an engineering background which is useful in understanding the money as debt conumdrum of modern economics. He is also fully aware of the impossibility of growing exports as a means of significant recovery.
Alex White has a background in economics and social studies as well as law and is involved in several commitees related to budgetary issues. He has been vocal in criticising the housing bubble and the shortsightedness of previous budgets. He is also keen to promote a stategic investment bank to 'get credit moving in the economy'. Of course every unit of credit would bring a new unit of debt. While this would be a short term measure to growing the economy we're sure he'd be keen to promote a longer term solution like full reserve banking.
Oliva Mitchell is spokeperson on Competition & Consumer Protection and has done some impressive work in this role. She has thought economics in the past and is very knowledgable on the importance of competition and the financial benifits of export growth in the short-term.
Joe Costello is the Minister of State for Trade and Development and has been involved in many dail debates regarding the debt crisis. He has welcomed efforts by France and Germany to control the crisis and has been an advocator of growth as a means of solving the problem. Of course any financial growth will be created in parallel with an even higher debt regardless of how GDP might behave. Joe's constituency is also quite affected by the harmful social consequences of the debt-based system.
Correct Our Financial Commentators
We believe that if the media were fully aware that banks created new money through every loan and deleted money through repayments we'd be on the road to changing fractional reserve banking to a better system.
Some common misconceptions are below;
If anyone in the media suggests that banks are financial intermediaries that lend out existing money from 'other people's deposits' we try to correct them.
If someone implies that only the ECB can create euros we say this isn't true. The ECB can create euros for banks' reserve accounts only. These euros aren't in circulation. We try to highlight the role of commercial banks in creating all the euros in the circulation.
Sometimes commentators suggest we're burdening our grandchildren with our debts and that we've somehow lived beyond our means. It's hard to imagine fractional reserve banking will be in operation as we know it today when our grandchildren are around. But if it is there's no way our grandchildren could borrow all the money they need to trade such that it can repay two debts - The debt that brought it into existence and our current debt.
Many commentators blame our political leaders including those in Europe. Politicians can't create money and have little control once it's in circulation. If Governments want more money they have to think of ways to collect it from circulation or borrow it into existence like everyone else. Governments also cannot make people organise bank loans.
Bank have also taken the blame for the debt crisis. However banks have to link a debtor to every euro they create and they can't operate without someone defaulting no matter how careful they are. They also can't be expected or relied upon to look after the Macroeconomy.