1975 – DEATH OF GRAHAM TOWERS, GOVERNOR, BANK OF CANADA, 1934-54
“Each and every time a bank makes a loan, new bank credit is created – new deposits – brand new money.”
2003 – THE LOST SCIENCE OF MONEY – A SOLUTION TO THE STATES’ FISCAL CRISES Speech by Stephen Zarlenga, Director of the American Monetary Institute, at the U.S. Treasury
“The supreme importance of the concept of money now becomes evident: For if money is primarily a commodity, convenient for making trades, which obtains its value out of ‘intrinsic’ qualities, then it could be viewed more as a creature of merchants and bankers than of governments.
“But if the true nature of money is an abstract social institution embodied in law – obtaining its value largely through legal sanctions, then its more a creature of governments, and the Constitution had better deal with it adequately. Describing how a uniform currency is to be provided, controlled and kept reasonably stable, in a just manner. It was on this crucial question that the Constitutional Convention faltered.”
2013 – INTERVIEW OF RODNEY SHAKESPEARE, PROFESSOR OF ECONOMICS
Q: Do you share this optimism about Iceland’s financial recovery?
Rodney Shakespeare: “Iceland is quite right to make an upright challenge to the global financial system. Unless you say that you are going to throw it out the window, they will always succeed in creating money out of nothing, lending to you with administration cost and interest, lending it for anything except the real economy. Lending it for anything except the spreading of the real economy and putting you into debt. And the debt becomes repayable.
You must rely on your own national bank for your own uses, for your own real economy and for the spreading of it. And if you don’t do that, you’ll be trapped in debt in the same way that…. well, you’ve got Greece, you’ve got Iceland, you’ve got every country in the world trapped in increasing debt and all that happens is that they increase the levels of the debt and smash the populations down.”
2019 – PUBLISHED “STATEMENT BY THE ALLIANCE FOR JUST MONEY ON THE OPEN LETTER ‘RETHINKING THE ROLE OF BANKS IN ECONOMICS EDUCATION’”
“In February 2019 economics students at the University in Maastricht in the Netherlands penned an open letter in which they challenged their economics professors and their textbooks on the money and banking theories they teach…
“At the Alliance For Just Money, we agree with these students’ assessment and support their initiative. We encourage students to challenge their teachers and examine their textbooks and curricula for outdated theories of banking. We would also point out that some textbooks might be actually correct (for example, McConnel & Brue’s Macroeconomics which addresses “Money-Creating Transactions of a Commercial Bank”) but may lack any discussion of the systemic adverse impacts of such money-creating transactions on such things as the formation of asset bubbles, resulting financial crises and economic inequality. We encourage students to press for such assessments and explore possible alternative solutions…
“And we would encourage these economics students not just to get their theories right, but also to look at existing proposals to fundamentally reform the current monetary system. We think banks should be intermediaries, like most people, including economists and politicians, incorrectly assume them to be. To that effect here in the USA the Alliance For Just Money (AFJM) and the American Monetary Institute (AMI) pursue identical policy objectives.”
1782 – BIRTH OF MARTIN VAN BUREN, 8TH PRESIDENT OF THE UNITED STATES
“The MONEY POWER…when firmly established, was destined to become the only kind of an Aristocracy that could exist in our political system.” (Note: Van Buren always capitalized “MONEY POWER” when using the term.)
Van Buren was Vice President when President Jackson refused to support the re-chartering of the private, misnamed “Second Bank of the United States” – the nation’s central bank at the time (equivalent in some ways to the Federal Reserve Bank of today). The Bank had originally been chartered for 20 years in 1816. A corporate charter was considered then a democratic tool, a means for the public to define the actions of a corporation to ensure it remained subordinate to meeting public needs (something We the People have forgotten today). After the Bank charter was dissolved (which meant the Bank could no longer create money as debt), Jackson and Van Buren sought to replace the money system with coinage or bank notes convertible to gold/silver. But this was an insufficient amount of currency needed to supply the growing the US economy. Currency contracted. The nation experienced the worst depression up to that time beginning in 1837.
2019 — “AGAINST ECONOMICS” PUBLISHED ARTICLE BY DAVID GRAEBER
“There is a growing feeling, among those who have the responsibility of managing large economies, that the discipline of economics is no longer fit for purpose. It is beginning to look like a science designed to solve problems that no longer exist.
“A good example is the obsession with inflation…
“We now live in a different economic universe than we did before the crash. Falling unemployment no longer drives up wages. Printing money does not cause inflation. Yet the language of public debate, and the wisdom conveyed in economic textbooks, remain almost entirely unchanged.”
1921 – THOMAS EDISON QUOTE IN THE NEW YORK TIMES
“If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good… If the Government issues bonds, the brokers will sell them. The bonds will be negotiable; they will be considered as gilt edged paper. Why? Because the government is behind them, but who is behind the Government? The people. Therefore it is the people who constitute the basis of Government credit. Why then cannot the people have the benefit of their own gilt-edged credit by receiving non-interest bearing currency… instead of the bankers receiving the benefit of the people’s credit in interest-bearing bonds?”
2010 – “CHINA FALLS INTO THE SAME TRAP” BLOG POST BY POSITIVE MONEY
“This won’t be a surprise for anyone familiar with the mechanisms of fractional reserve banking. As soon as we allow commercial banks to take control of the creation of money, all we have to look forward to is unaffordable housing, significant inflation, excessive debt, and shortly after, a wave of bank collapses, which are in turn followed by taxpayer-funded bailouts, austerity measures, and potentially an IMF bailout of the government. It seems that China is falling into the same trap that has caught the US, UK, Ireland, Spain and many other Western countries.” http://positivemoney.org/2010/12/china-falls-into-the-same-trap/
2012 – “THE BIRTH OF THE DOLLAR BILL” AIRING ON NPR “PLANET MONEY” PROGRAM
“Before the Civil War, there were 8,000 different kinds of money in the United States.
“Banks printed their own paper money. And, unlike today, a $1 bill wasn’t always worth $1. Sometimes people took the bills at face value. Sometimes they accepted them at a discount (a $1 bill might only be worth 90 cents, say.) Sometimes people rejected certain bills altogether.
“On today’s show, we figure out how this world worked. And explain how the Civil War — and the Union’s need for money — changed everything.”
1931 – PRESIDENT HOOVER CALLS FOR BANKING REFORM IN MESSAGE TO CONGRESS
“Our people have a right to a banking system in which their deposits shall be safeguarded and the flow of credit less subject to storms.”
“Congress should investigate the need for separation between different kinds of banking, an enlargement of branch banking under proper restrictions, and the methods by which enlarged membership in the Federal Reserve System may be brought about.”
[Note: While Hoover was correct in pointing out that reforms were needed to the banking system to safeguard deposits and to separate different types of banking, he and FDR who followed him in the Oval Office failed to truly understand the root of the monetary problem – the authority of banks to create our money as debt and to issue such debt money multiple times in excess of their actual deposits (called “fractional reserve” lending). Yes, FDIC insurance to protect bank deposits and the Glass-Steagall Act to separate commercial and investment banks were fine banking reforms. Neither, however, were monetary reforms – changes to the basic structure of our monetary system that empowers economically and politically banking corporations in the creation and distribution of money.]
1946 – BIRTH OF SONIA GANDHI, PRESIDENT, HEAD OF CONGRESS PARTY, INDIA
“Let me take you back to Indira Gandhi’s bank nationalization of 40 years ago. Every passing day bears out the wisdom of that decision. Public sector financial institutions have given our economy the stability and resilience we are now witnessing in the face of the economic slowdown.”
1690 – PAPER MONEY ISSUED BY MASSACHUSETTS
Faced with a pressing need to fund military action against Canada during King William’s War, the Massachusetts colonial government authorized the issuing of £7,000 in public paper currency. This was the first public paper money issued in the colonies. The paper money possessed no intrinsic value. Its only value was that it was backed by the colony, accepted for tax payments. The notes could be redeemed for hard currency if such currency was available.
1896 – DEATH OF ALFRED NOBEL, INVENTOR AND BENEFACTOR OF THE NOBEL PRIZES
Annual international awards are bestowed on this day to honor great scientific and cultural advances in humanity in chemistry, literature, peace, physics and physiology or medicine, but not in economics. There has never been a Nobel Prize in economics. An annual Economic Science award is presented by Sweden’s Central Bank “in memory of Alfred Nobel” against the wishes of the Nobel family.
“The Economics Prize has nestled itself in and is awarded as if it were a Nobel Prize. But it’s a PR coup by economists to improve their reputation,” Nobel’s great, great nephew Peter Nobel stated in 2005. “It’s most often warded to stock market speculators…There is nothing to indicate that [Alfred Nobel] would have wanted such a prize.”
2019 – “CHRISTOPHER SHAW AND THE AMERICAN STRUGGLE TO MAKE BANKING MORE DEMOCRATIC,” POSTED ONLINE INTERVIEW
“Your book tracks the ebb and flow of these voices challenging the banking institutions. When was the height of the call for public control over financial institutions?…
“’There are two moments. The most intense was in the early portion of the Great Depression. The banks were failing and crashing. The entire economy was in meltdown mode. Thousands of banks were suspended during that time. The banks were making the depression much worse than it was. Unemployment was at least 25 percent. That was probably the most intense.’
“’But also during the progressive era – from the Panic of 1907 up until the start of World War I – there was a lot of civic engagement with these questions. Banking reform was on the table.’”…
“Your book ends during the Obama administration. Do you see a rise in banking politics since?
“’Yes. It has come out of the blue. It’s not what it was. But people are talking about it again. You are seeing it with the candidacies of Bernie Sanders and Elizabeth Warren for President. You saw it with the Occupy Wall Street movement. Some in the Republican Party are complaining about too big to fail banks. Banking is being discussed again in a way that it really hasn’t been for decades.’”
2019 – PUBLICATION OF THE ALLIANCE FOR JUST MONEY PAMPHLET
“The US Constitution gives the power to create money to the Congress, for reasons stated in the Preamble.
“The money creation power was purposely not given to a private, profit driven banking system such as we have today.
“New Threats to our habitat and our republic challenge us to bring the money system back under public control now.
It doesn’t have to be this way…
“The Alliance For Just Money is working to change the system so money can be created debt-free….
“THREE CRITICAL REFORMS
“Achieving Just Money requires three reforms of our money and banking system to be implemented together.
“1. Require Congress to a) exercise its Constitutional responsibility to be the sole creator of all U.S. money, issued debt-free, b) to establish a transparent and independent, public monetary authority to determine the amount of new money Congress should create to maintain purchasing power.
“2. End the privilege of commercial banks to create and issue what we use as money.
“3. Transfer ownership of the 12 Federal Reserve Banks, and all remaining operations of the Federal Reserve System, to the U.S. Treasury.
“Legislation is written already, introduced to Congress in 2011 as HR 2990. It creates a Public Money System in which anything physically possible, ecologically wise, and socially desirable is financially feasible.”