Reinventing Banking: From Russia to Iceland to Ecuador

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Iceland moves to ban private banks from creating money out of thin air. Russia, Ireland, Britain and Ecuador move to limit the banksters’ monopoly over the money supply. Contrary to popular perception, 95% of the global money supply is created by private banks as loans. See How Banks Invent Money Out of Thin Air

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Global developments in finance and geopolitics are prompting a rethinking of the structure of banking and of the nature of money itself. Among other interesting news items:

In Russia, vulnerability to Western sanctions has led to proposals for a banking system that is not only independent of the West but is based on different design principles.

In Iceland, the booms and busts culminating in the banking crisis of 2008-09 have prompted lawmakers to consider a plan to remove the power to create money from private banks.

In Ireland, Iceland and the UK, a recession-induced shortage of local credit has prompted proposals for a system of public interest banks on the model of the Sparkassen of Germany.

In Ecuador, the central bank is responding to a shortage of US dollars (the official Ecuadorian currency) by issuing digital dollars through accounts to which everyone has access, effectively making it a bank of…

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