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Banking

An Idiot's Guide to Banking - How To Avoid Being A Currency Crank

'An Idiot's Guide to Banking - How To Avoid Being A Currency Crank'.
Summer School 2016 - 'Money Talks'

Venue: Fircroft College, Birmingham

Recorded: 
Saturday, 23 July 2016

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Cooking the Books: Swizz Banking?

Swiss banking reformers have obtained the 100,000 signatures needed to initiate a referendum to restrict bank lending or, as they put it, to stop banks benefiting from being able to create electronic money out of nothing.

Explaining the apparent logic behind the proposal in the Financial Times (5/6 December), Martin Sandhu wrote:

‘The bank decides whether it wants to make you a loan. If it does, then it simply adds the loan to its balance sheet as an asset and increases the balance in your deposit account by the same amount (that’s a liability for them). Voilà; new electronic money has been created.’

Cooking the Books: Green Recipe for Raging Inflation

‘The Green Party believes’, reads a resolution carried at their annual conference in September, ‘that the power to create money must be removed from private banks.’ What power, and how?

At one time ‘money’ was defined just as the notes and coins issued by the government or a central bank, but modern economists have come to include bank loans too as money. This can be confusing if it is assumed that these two types of money are the same, as is often done. For instance, the Green Party resolution says that only 3 percent of the UK’s ‘money supply’ is issued by the central bank as notes and coins, with the remaining 97 percent taking the form ‘of credit that is created electronically by private banks through the accounting processes they follow when they make loans’ (emphasis added).

Book Reviews: 'The Value of Radical Theory - An Anarchist Introduction to Marx’s Critique of Political Economy' & 'Disassembly Required - A Field Guide to Actually Existing Capitalism'

Marxian economics

The Value of Radical Theory. An Anarchist Introduction to Marx’s Critique of Political Economy. By Wayne Price. AK Press. 190 pages. £8.95.

We often joke that anarchists know very little about economics and that what little they do know they got from Marx. US class-struggle communist anarchist Wayne Price seems to agree and has written  a short book to explain Marxian economics to his fellow anarchists.

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