The Democrac Decit in Banking
W C L. W ‘’ , , .
However, the greatest concern is that govern
ment has surrendered one of its most importantpowers—the power to create money and controlthe money supply—to the private sector which hasexploited this power to blow up housing bubblesand indirectly transfer wealth upwards and inwards,with disastrous results. There has been no demo
crac debate about this transfer of power, and nolaw acvely sancons the current set-up.As the last few years have shown, the bankingsector can have a serious negave impact on ourlives. Leaving it with such a huge and unaccountabledegree of power is no more likely to work in thebest interests of society or democracy in the futurethan it has in the past.
Ceding the PoWer to
CReAte MoneY to tHeBAnkInG seCtoR
In the current system, banks create the vast majorityof money in the UK, in the form of the electronicbank deposits that appear in your bank account.They create this money without regard to how muchis needed for the economy and society as a wholeto operate eecvely, and they put over 90% of thismoney towards acvies that do not contribute tothe growth of the economy.This power to create money causes inaon thatinsidiously transfers wealth from savers and thosewho hold their wealth in cash (i.e. the poor andthose on medium incomes) to those who are rich