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Monetative Mission Statement

This is part of the mission statement of the German monetary reform website Monetative, which is associated with economic sociologist Prof Joseph Huber.

Taking Money Creation back into Public Hands

The financial crises of the recent past are rooted in the monetary system as it stands today. This system creates excessive credit which inevitably feeds speculative bubbles, asset and consumer price inflation, and results in over-indebtedness. In order to work properly, the economy needs to rely on a stable and just monetary system. That is why we call for:

  1. the full re-establishment of the public prerogative of creating money

  2. an end to the creation of money by means of commercial bank credit

  3. spending new money into circulation debt-free through public expenditure.

Money makes the world go round. Who makes the money go round?

Everybody uses money as though it were self-evident. But the actual functioning of the monetary system remains just as nebulous as its characterisation as ‘fractional reserve system’ or ‘multiple credit creation’. This works to the benefit of the banks. They have in effect usurped the prerogative to create money by crediting 80-95 % of the means of payment into circulation in the form of demand deposits on current accounts.

An increasing part of the money supply has of late fueled purely financial transactions which have no benefit for the real economy, but have caused much real damage to it. The barely restrained creation of credit drives business cycles and the stocks and securities markets into irrational exuberance – wildly overshooting in boom periods, while resulting in over-indebtedness and a severe under-supply of money in ensuing crises. If banks themselves go bust, their customers’ deposits and savings are at risk. If the state then intervenes to bail out the banks and vouch for the public’s deposits, governments in effect privatize banking profits while passing the losses on to the public.

Banks act as individual companies. They are duty bound neither to macroeconomic goals nor to the common interest. Leaving to them the weighty prerogative of creating the official means of payment is untenable. Money and the monetary order represent concerns of constitutional importance.


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