Jump directly to the following questions covered in this interview:

Q 1 – Where does money come from?
Q 2 – Is money neutral?
Q 3 – Why is money scarce?
Q 4 – Can this monetary system work sustainably?
Q 5 – Does the financial system need growth?
Q 6 – Why are you interested in monetary-systems?
Q 7 – Do we have just one monetary system at the moment? Like a monopoly?
Q 8 – What would you propose regarding the monetary system?
Q 9 – Are there alternatives to the current monetary system?
Q 10 – Why is there this speechlessness about money-topics?
Q 11a – What kind of behaviour does our money-system create between people?
Q 11b – Does the scarcity of money harm only the poor people?
Q 11c – What does money do to people and their relationships?
Q 12 – How did you discover complementary currencies?
Q 13 – Did the knowledge of complementary currencies effect your life?
Q 14 – What do you think your co-author Margrit Kennedy achieved in regard to monetary systems?
Q 15 – Are there changes to this financial system?
Q 16 – What do you think about internet-based currencies like Bitcoin and the new technology Blockchain?
Q 17 – You observed the global financial development for decades. What do you conclude from your experience?
Q 18 – Where do you see practical progress concerning complementary currencies?
Q 19 – What would you propose for countries which are in Euro-crisis like Greece?
Q 20 – If you were in power, what would you do?
Q 21 – What do you think about the Euro?
Q 22 – For which task do we need the Euro?
Q 23 – Could a currency have influence on the question of war or peace?
Q 24 – Are there “currency-wars” or wars because of currencies?
Q 25 – Does the money-system polarize?
Q 26 – Can a national lead-currency deprive other currencies and nations?
Q 27 – What is the motivation for your work?
Q 28 – Do you like to give a message to the next generation?

These 6 videos have been created and published by the Positive Money Campaign, UK: http://positivemoney.org

Part 1: Misconceptions Around Banking

Before we discover how banks really work, and how money is created, first to clear up any confusion, we need to see what’s wrong about the way that most people think banks work.

 

Most students and graduates get taught about something called the ‘money multiplier’. In this video we’ll show that it’s an inaccurate and outdated way of describing how the banking system works.

 

See how commercial banks can create money through the accounting process they use when they make loans, how banks make payments between each other using specially created central bank money, if the Bank of England really can control how much money is in the economy …and more.

 

What actually limits how much money the banks can create? Reserve ratios, Liquidity ratios, Capital Adequacy Ratios and/or the Basel accords? Explained in an easy to understand way.

 

You might hear some people say that “Banks don’t create money – they just create credit”. This response often comes from civil servants and people trying to deny that banks now create the nation’s entire money supply. So let us show you why the numbers that banks create are money, and not just ‘credit’.

 

Remember how new money is created when a bank makes a loan? Well, when someone repays the loan, the opposite process happens, and money is actually destroyed. It effectively disappears from the economy entirely. This video explains how.

 

Bernard Lietear, economist, central banker, psychologist, author and money designer, gives a vivid account of todays money sy­stem crisis – and what do to about changing it to serve us better.

Lietaer talks about the four powerful human-created mega-trends that he ex­pects to converge within ten years and that will need to be resolved within twenty years: Climate change and biodiversity extinc­tion, age wave, information revolution and monetary instability. His conclusion: we will experience as much change in conscious­ ness within twenty years as over the past 5000 years.

Those who would like to understand how money works and in which way it influences our lives, should ask Margrit Kennedy. Through her books and lectures she uncovers a fundamental flaw in our money system, that creates social injustice and an explosive growth dynamic. Kennedy describes a possible way out of the risk prone monopoly of todays money system: the intro­duction of a variety of complementary currenci­es that can be designed to serve specific purpo­ses, similar to the principle of diversity in nature. In a very personal way, she speaks about her odyssey through the world of money and about successful experiments, that could inspire us to prevent financial crises in the future.

John Rogers ran a local exchange system in Wales from 1993-2003, co-directed the Wales Institute for Community Currencies at the University of Newport from 2003-2007 and is the author of three books on local currencies.

In July 2013, he was invited by Professor Bendell at IFLAS (The Institute for Leadership and Sustainability) in the University of Cumbria, England, to give an Open Lecture on community currencies.

National currency is a highly successful ‘social technology’ that enables us to do business with each other, to build roads, schools and hospitals and run complex modern economies. But all this comes at a price. The interest-bearing money system behind it creates debt and erodes regional autonomy.

Local currencies are necessary as a counterbalance and come in many shapes and forms. But an even more challenging question than ‘why’ we need them is ‘how to do them’.

John Rogers outlines three ‘Ms’ as guiding principles for successful local currency development:

Mavericks
– most local currencies are run by people outside the mainstream who can see a different way of doing local economies – we should encourage the mavericks

Methodology – we need more methodology and less ideology around local currency development in order to ensure that they are designed, managed and governed well

Maps – we need to make richer maps of the unmet needs and underused resources in each region before introducing local currencies.

First published in the Forum CSR international, Vol 28. pp 66-69.
In the late seventies, environmentalists – among whom I count myself – were among the first to question the present money system, which – in order to function – requires exponential growth returns that the planet could never sustain. We discovered that there was a severe lack of understanding on the most basic facts about money amongst laymen as well as professional economists. Up to this day, it remains almost taboo among economists, bankers and politicians to discuss it publicly, as if the global monetary system was a fundamental given. However, nothing could be further from the truth…

The whole article can be downloaded here.

A 10min video by the NGO for regional development www.Regionalentwicklung.de
What are regional currencies? Regional/local currencies are a relatively new phenomenon in economy. Since in 2003 the “Chiemgauer”, a local currency at the lake Chiemsee (Germany) started off, the project has inspired many similar projects, and enriched the ideas about how money can function a lot. Regional currencies are a medium of exchange designed for a certain region, which are used in addition to the currency of the country.