Ett kapitel ur James Robertsons nya bok, som beräknas ges ut i september.
”Crises of financial instability are the inevitable result of mixing together the two conflicting functions of providing the public money supply in the interest of society as a whole, and competing for profit in the commercial market for lending and borrowing money.
A simple basic reform is all that is needed to separate the two functions now confused. It has two complementary parts.
(1) It will transfer to nationalised central banks like the Bank of England the responsibility for creating, not just banknotes and coins as now, but also the overwhelmingly large component of the supply of public money consisting of bank-account money mainly held and transmitted electronically. Having created the money, the central bank will give it to the government to spend it into circulation on public purposes under standard democratic budgetary procedures.
(2) It will prohibit anyone else, including commercial banks, from creating bank-account money out of thin air, just as forging metal coins and counterfeiting paper banknotes are criminal offences.