Media Statement
Something to Think About
While the Reserve Bank Governor thinks about his response to the question posed by New Zealand Banking Reform in an
earlier release (See… Dr Brash Invited To Explain Money Creation System), the following are a few interesting statements from other central bankers on the subject of money creation.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
"Each and every time a bank makes a loan, new bank credit is created - new deposits - brand new money."
Graham Towers, former Governor of the Central Bank of Canada
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
"I am afraid that the ordinary citizen would not like to be told that banks or the Bank of England, can create and
destroy money. The amount of money in existence varies only with the action of the banks in increasing and decreasing
deposits and bank purchases. Every loan, overdraft or bank purchase creates a deposit and every repayment of a loan,
overdraft or bank sale destroys a deposit."
Rt. Hon. Reginald McKenna, former Chancellor of the Exchequer and former chairman of the Midland Bank.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
"If you want to be slaves of the bankers, and pay the costs of your own slavery, then let the banks create money."
"The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of slight
of hand that has ever been invented. Banking was conceived in iniquity and born in sin. Bankers own the earth; take it
away from them, but leave them with the power to create credit, and with the stroke of a pen they will create enough
money to buy it back again. If you want to be slaves of the bankers, and pay the costs of your own slavery, then let the
banks create money."
Lord Josiah Stamp, former director of the Bank of England.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
"This is a staggering thought. We are completely dependent upon the commercial banks. Someone has to borrow every dollar
we have in circulation, cash or credit. If the banks create ample synthetic money, we are prosperous, if not, we starve.
We are absolutely without a permanent monetary system."
Robert Hemphill, eminent banker.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
"Today's money system boils down to institutionalized theft"
Ed Mayo, Executive Director, New Economics Foundation (UK)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Dr Finlay Thompson, Member of NZ Banking Reform.
Ph 021 117 9149
To contact New Zealand Banking Reform:
To join the discussion group send a blank email to.
or use the following link.