Monetary reform, a better monetary system for Iceland

[LazyPooky]

Iceland has recently published a report in which they plead for a Sovereign Money System, written by Frosti Sigurjonsson. The Icelandic government is considering a revolutionary monetary plan. In short, it means that the power by banks to create money is taken away and transferred to the central bank. If the plan is carried out, it means a total revolution in the history of banking.

http://www.theautomaticearth.com/201...-create-money/

Report: http://www.forsaetisraduneyti.is/med...ary-reform.pdf

[Buzz]

since when private banks create money?...I thought the only bank that is allowed to issue money is the central bank...like the ECB in the EU

[StingX]

since when private banks create money?...I thought the only bank that is allowed to issue money is the central bank...like the ECB in the EU

I was thinking the same thing.

[LazyPooky]

They create money when you get a loan from them for example. It's about virtual money, not actually making physical money like coins.

[SportaKandy]

These systems do need structural changes. I can tell you that the Federal Reserve is insolvent on a market to market basis. The central banks don't have anywhere near the capital to guarantee this money created by banks. But is the solution to give them all the power over creation? At some point they're going to have to stop printing money. And when confidence is lost people will run to the banks. What happens then? Do you really want the central banks to have the ability to lock u out of your assets?

http://goldline.com