How is it Created?

    If Banks can Create Money, then why did Northern Rock run out of Money?

    By Alistair McConnachie Some people who are opposed to our reform will claim that we must be wrong when we say that “banks create money” because, “If banks can create money, then they should never go bust.” This article was written with credit due (or a debt owed!) to Ben Dyson and the Positive Money […]

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    How the Fractional Reserve System Works

    By Alistair McConnachie This article is intended to provide Money Reformers with important background information on the fractional reserve system – and which may help them if they have to explain it at length in any kind of public situation. The explanations which we’ve extracted from the textbooks below, are clear and concise and are […]

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    How Banks Create Money Out of Nothing

    The following has been compiled by Alistair McConnachie, from mainstream economics textbook Success in Economics by Derek Lobley B.A. (London: John Murray Publishers Ltd, 1978 edition), which was part of the “Success Studybooks” series. It was intended to be “appropriate to the Economics syllabuses of many of the professional bodies such as … the Institute […]

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    The Money Trick

    At some unknown, but fateful, point in medieval history, a moneylender realised that the essence of a viable money system is confidence and that, once this confidence was established, a magical and very remunerative trick could be played. Typically, the moneylenders were possessors of a stock of precious metals, which they would loan out into […]

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    How Private, Commercial, National and International Money is Created

    The following was abridged by Alistair McConnachie, from the works of Michael Rowbotham The financial system currently adopted by all nations is often described as “debt based”, since the process of going into debt is relied upon almost exclusively to create and supply money to their economies. By the action of lending to borrowers, commercial […]

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