[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:02.47,0:00:08.69,Default,,0000,0000,0000,,NARRATOR: How is money created, where does\Nit come from? Who benefits? And what purpose
Dialogue: 0,0:00:08.69,0:00:09.73,Default,,0000,0000,0000,,does it serve?
Dialogue: 0,0:00:09.73,0:00:11.81,Default,,0000,0000,0000,,SHOUTING: Back off you f{\i1}*{\i0}ing Nazi!
Dialogue: 0,0:00:11.81,0:00:16.11,Default,,0000,0000,0000,,What is the money system? What is the money\Nbehind the money system?
Dialogue: 0,0:00:16.11,0:00:21.37,Default,,0000,0000,0000,,NARRATOR: For centuries the mechanics of the\Nmoney system have remained hidden from the
Dialogue: 0,0:00:21.37,0:00:28.74,Default,,0000,0000,0000,,prying eyes of the populace. Yet its impact,\Nboth on a national and international level,
Dialogue: 0,0:00:28.74,0:00:36.21,Default,,0000,0000,0000,,is perhaps unsurpassed, for it is the monetary\Nsystem that provides the foundations for international
Dialogue: 0,0:00:36.21,0:00:39.29,Default,,0000,0000,0000,,dominance and national control.
Dialogue: 0,0:00:39.29,0:00:43.25,Default,,0000,0000,0000,,CHANTING: Whose streets? Our streets!
Dialogue: 0,0:00:43.25,0:00:49.43,Default,,0000,0000,0000,,NARRATOR: Today, as these very foundations\Nare being shaken by crises, the need for open
Dialogue: 0,0:00:49.43,0:00:55.24,Default,,0000,0000,0000,,and honest dialogue on the future of the monetary\Nsystem has never been greater.
Dialogue: 0,0:00:55.24,0:00:59.85,Default,,0000,0000,0000,,This economic crisis is like a cancer. If\Nyou just wait and wait, thinking this is going
Dialogue: 0,0:00:59.85,0:01:03.99,Default,,0000,0000,0000,,to go away, just like a cancer it's going\Nto grow, and it's going to be too late. What
Dialogue: 0,0:01:03.99,0:01:10.72,Default,,0000,0000,0000,,I would say to everybody is, get prepared.\NThis is not a time right now for wishful thinking
Dialogue: 0,0:01:10.72,0:01:14.57,Default,,0000,0000,0000,,that the government is going to sort things\Nout. The governments don't rule the world:
Dialogue: 0,0:01:14.57,0:01:16.68,Default,,0000,0000,0000,,Goldman Sachs rules the world.
Dialogue: 0,0:01:16.68,0:01:19.70,Default,,0000,0000,0000,,"We're on the verge of a perfect storm".
Dialogue: 0,0:01:19.70,0:01:25.83,Default,,0000,0000,0000,,NARRATOR: In opposition lie corrupt and entrenched\Ninterests that lurk in the corridors of power,
Dialogue: 0,0:01:25.83,0:01:32.00,Default,,0000,0000,0000,,for whom there are no reasons to relinquish\Nprivileges that they feel are justly deserved.
Dialogue: 0,0:01:32.00,0:01:38.00,Default,,0000,0000,0000,,DAVID CAMERON: Has he got a reform plan for\Nthe NHS? [SHOUT: No!] Has he got a police
Dialogue: 0,0:01:38.00,0:01:41.82,Default,,0000,0000,0000,,reform plan? [No!] Has he got a plan to cut\Nthe deficit? [No!]
Dialogue: 0,0:01:41.82,0:01:58.41,Default,,0000,0000,0000,,SPEAKER OF THE HOUSE OF COMMONS: Order! Misorder!\NOrder! Try to calm down and behave like an
Dialogue: 0,0:01:58.41,0:02:04.78,Default,,0000,0000,0000,,adult, and if you can't, if it's beyond you,\Nleave the chamber. Get out. We'll manage without
Dialogue: 0,0:02:04.78,0:02:06.31,Default,,0000,0000,0000,,you!
Dialogue: 0,0:02:06.31,0:02:09.31,Default,,0000,0000,0000,,"This is the zombie banks' protected feeding\Nstation."
Dialogue: 0,0:02:09.31,0:02:14.83,Default,,0000,0000,0000,,There's no coincidence that boom and bust\Nbecame a real cyclical issue around about
Dialogue: 0,0:02:14.83,0:02:21.09,Default,,0000,0000,0000,,the 1700s when William Paterson founded the\NBank of England.
Dialogue: 0,0:02:21.09,0:02:24.49,Default,,0000,0000,0000,,"Eat her! Eat her now!"
Dialogue: 0,0:02:24.49,0:02:31.98,Default,,0000,0000,0000,,SPEAKER OF THE HOUSE OF COMMONS: This is intolerable\Nbehaviour as far as the public is… No, it's
Dialogue: 0,0:02:31.98,0:02:41.06,Default,,0000,0000,0000,,not funny! Only in your mind is it funny.\NIt's not funny at all, it's disgraceful.
Dialogue: 0,0:02:41.06,0:02:43.31,Default,,0000,0000,0000,,CHANTING: Revolution! Revolution!
Dialogue: 0,0:02:43.31,0:02:48.40,Default,,0000,0000,0000,,NARRATOR: The system is inherently unstable\Nas a result of the international power it
Dialogue: 0,0:02:48.40,0:02:54.92,Default,,0000,0000,0000,,provides to the dominant parties, for at the\Nheart of it lies the idea of ‘How can I
Dialogue: 0,0:02:54.92,0:02:57.64,Default,,0000,0000,0000,,get something for nothing'.
Dialogue: 0,0:02:57.64,0:03:03.73,Default,,0000,0000,0000,,Statistical analysis has found that every\Ntime an empire begins to near its own demise,
Dialogue: 0,0:03:03.73,0:03:06.68,Default,,0000,0000,0000,,you'll find that its currency will be debased.
Dialogue: 0,0:03:06.68,0:03:11.50,Default,,0000,0000,0000,,There is no guide to how this whole system\Noperates. To give you an example, a researcher
Dialogue: 0,0:03:11.50,0:03:16.07,Default,,0000,0000,0000,,at the BBC working on a Robert Peston documentary\Nwent to the Bank of England and said, "Can
Dialogue: 0,0:03:16.07,0:03:21.78,Default,,0000,0000,0000,,you give me a guide to how money is created?"\NAnd they just said, "no".
Dialogue: 0,0:03:21.78,0:03:27.04,Default,,0000,0000,0000,,NARRATOR: This documentary will investigate\Nand explain this ever changing system, and
Dialogue: 0,0:03:27.04,0:04:05.30,Default,,0000,0000,0000,,the impact it has both on a national and international\Nlevel.
Dialogue: 0,0:04:05.30,0:04:12.33,Default,,0000,0000,0000,,In 2010 the total UK money supply stood at\N2.15 trillion pounds.
Dialogue: 0,0:04:12.33,0:04:17.72,Default,,0000,0000,0000,,2.6 % of this total was physical cash, £53.5\Nbillion.
Dialogue: 0,0:04:17.72,0:04:27.58,Default,,0000,0000,0000,,The rest, £2.1 trillion, or 97.4% of the\Ntotal money supply was commercial bank money.
Dialogue: 0,0:04:27.58,0:04:36.37,Default,,0000,0000,0000,,The 3% of money is created through the central\Nbank and that money essentially, if you created
Dialogue: 0,0:04:36.37,0:04:42.24,Default,,0000,0000,0000,,a £10 note you could sell that to a bank\Nto put into their ATM and the bank would have
Dialogue: 0,0:04:42.24,0:04:48.37,Default,,0000,0000,0000,,to repay that £10 or buy it for £10. There\Nwould be no interest charged on that money
Dialogue: 0,0:04:48.37,0:04:56.41,Default,,0000,0000,0000,,but that money is then essentially transferred\Nto the Treasury and it's a form of fundraising
Dialogue: 0,0:04:56.41,0:05:07.21,Default,,0000,0000,0000,,for the government. It's called seigniorage.
Dialogue: 0,0:05:07.21,0:05:13.28,Default,,0000,0000,0000,,When the Bank Of England creates a 10 pound\Nnote, it cost it about 3 or 4 pence to actually
Dialogue: 0,0:05:13.28,0:05:20.52,Default,,0000,0000,0000,,print that note and it sells it to a high\Nstreet banks at face value, so 10 pounds,
Dialogue: 0,0:05:20.52,0:05:27.01,Default,,0000,0000,0000,,and the profit, the difference between printing\Nthe note and actually selling it for 10 pounds
Dialogue: 0,0:05:27.01,0:05:33.76,Default,,0000,0000,0000,,goes directly to the treasury. So, in effect\Nall the profit that we get on creating physical
Dialogue: 0,0:05:33.76,0:05:40.91,Default,,0000,0000,0000,,money, bank notes, goes to the treasury and\Nit reduces how much taxes we have to pay.
Dialogue: 0,0:05:40.91,0:05:44.41,Default,,0000,0000,0000,,Over the last 10 years, that's raised about\N18 billion pounds.
Dialogue: 0,0:05:44.41,0:05:52.61,Default,,0000,0000,0000,,NARRATOR: In 1948 notes and coins constituted\N17% of the total money supply. This was one
Dialogue: 0,0:05:52.61,0:05:58.09,Default,,0000,0000,0000,,contributing factor in the government's ability\Nto finance post-war reconstruction. This included
Dialogue: 0,0:05:58.09,0:06:00.17,Default,,0000,0000,0000,,the establishment of the NHS.
Dialogue: 0,0:06:00.17,0:06:10.65,Default,,0000,0000,0000,,In only 60 years notes and coins have shrunk\Nto less than 3 %
Dialogue: 0,0:06:10.65,0:06:18.15,Default,,0000,0000,0000,,Prior to 1844 bank notes were created by private\Nbanks and the government did not profit from
Dialogue: 0,0:06:18.15,0:06:20.86,Default,,0000,0000,0000,,their creation.
Dialogue: 0,0:06:20.86,0:06:26.08,Default,,0000,0000,0000,,In the 1840s there was no law to stop banks\Nfrom creating their own bank notes. So they
Dialogue: 0,0:06:26.08,0:06:33.51,Default,,0000,0000,0000,,used to issue paper notes as kind of a representative\Nof what you had in the bank account. Instead
Dialogue: 0,0:06:33.51,0:06:37.89,Default,,0000,0000,0000,,of you taking your heavy metal coins out of\Nthe bank and then going and paying somebody
Dialogue: 0,0:06:37.89,0:06:42.49,Default,,0000,0000,0000,,with them you could get your paper which said\Nhow much money you had in the bank and you
Dialogue: 0,0:06:42.49,0:06:45.43,Default,,0000,0000,0000,,could give that to somebody and they could\Nuse that to go and get the heavy metal coins
Dialogue: 0,0:06:45.43,0:06:52.04,Default,,0000,0000,0000,,from the banks. Now overtime these paper notes\Nbecame as good as money. People would use
Dialogue: 0,0:06:52.04,0:06:57.34,Default,,0000,0000,0000,,paper notes instead of going and getting real\Nmoney from the bank and obviously as soon
Dialogue: 0,0:06:57.34,0:07:03.34,Default,,0000,0000,0000,,as the banks realised that what they were\Ncreating had become the dominant type of money
Dialogue: 0,0:07:03.34,0:07:08.12,Default,,0000,0000,0000,,in the economy, they realised that by creating\Nmore of it they could generate profits. They
Dialogue: 0,0:07:08.12,0:07:13.08,Default,,0000,0000,0000,,can just print up some new notes, lend it\Nand get the interest on top of them. And they
Dialogue: 0,0:07:13.08,0:07:18.95,Default,,0000,0000,0000,,did that up until the 1840s. In the 1840s\Nthey pushed it just a little bit too far and
Dialogue: 0,0:07:18.95,0:07:26.11,Default,,0000,0000,0000,,that caused inflation, destabilised the economy.\NSo in 1844, the conservative government of
Dialogue: 0,0:07:26.11,0:07:31.95,Default,,0000,0000,0000,,Robert Peel actually passed a law that took\Nthe power to create money away from the commercial
Dialogue: 0,0:07:31.95,0:07:36.49,Default,,0000,0000,0000,,banks and brought it back to the state. So\Nsince then the Bank of England has been the
Dialogue: 0,0:07:36.49,0:07:47.89,Default,,0000,0000,0000,,only organisation authorised to create paper\Nnotes. Since then everything has gone digital
Dialogue: 0,0:07:47.89,0:07:56.08,Default,,0000,0000,0000,,and what we now use as money is digital numbers\Nthat commercial banks can create out of nothing.
Dialogue: 0,0:07:56.08,0:08:03.21,Default,,0000,0000,0000,,The problem was that they did not include\Nin that legislation the deposits, the demand
Dialogue: 0,0:08:03.21,0:08:11.51,Default,,0000,0000,0000,,deposits, held in banks by individuals or\Nelectronic forms of money which essentially
Dialogue: 0,0:08:11.51,0:08:17.44,Default,,0000,0000,0000,,what those demand deposits are. Today most\Nof the money in circulation is electronic
Dialogue: 0,0:08:17.44,0:08:26.58,Default,,0000,0000,0000,,money, it's bank demand deposits that sit\Nin our accounts. So in a way the legislation's
Dialogue: 0,0:08:26.58,0:08:35.73,Default,,0000,0000,0000,,got to catch up with the developments in electronic\Nmoney and the way that banks actually operate.
Dialogue: 0,0:08:35.73,0:08:41.17,Default,,0000,0000,0000,,NARRATOR: Money held in bank accounts are\Ncalled demand deposits. This is an accounting
Dialogue: 0,0:08:41.17,0:08:47.05,Default,,0000,0000,0000,,term the banks use when they create credit.\NBanks follow the same process when they create
Dialogue: 0,0:08:47.05,0:09:00.00,Default,,0000,0000,0000,,loans. All money held in bank accounts, is\Nan accounting entry.
Dialogue: 0,0:09:00.00,0:09:05.99,Default,,0000,0000,0000,,The reality is now that most money is not\Npaper and it's not metal coins, its digital.
Dialogue: 0,0:09:05.99,0:09:10.57,Default,,0000,0000,0000,,It's just numbers in a computer system. It's\Nyour Visa debit card, it's your electronic
Dialogue: 0,0:09:10.57,0:09:18.72,Default,,0000,0000,0000,,ATM card. It's this, its plastic. Its numbers\Nin a computer system, you move money from
Dialogue: 0,0:09:18.72,0:09:25.38,Default,,0000,0000,0000,,one computer system to another, it's all a\Nbig database and this digital money is what
Dialogue: 0,0:09:25.38,0:09:29.82,Default,,0000,0000,0000,,we are now using to make payments with, it's\Nwhat we actually use to run the economy.
Dialogue: 0,0:09:29.82,0:09:35.99,Default,,0000,0000,0000,,I think a lot of people in the UK probably\Nthink that the government or the central bank
Dialogue: 0,0:09:35.99,0:09:43.15,Default,,0000,0000,0000,,is in control of most money in circulation\Nand issues new money into circulation, but
Dialogue: 0,0:09:43.15,0:09:49.54,Default,,0000,0000,0000,,that's not the case. It's private banks that\Ncreate the vast majority of new money in circulation
Dialogue: 0,0:09:49.54,0:09:53.08,Default,,0000,0000,0000,,and also decide how it's allocated.
Dialogue: 0,0:09:53.08,0:10:02.50,Default,,0000,0000,0000,,NARRATOR: The official terminology for this\Naccounting entry is commercial bank money.
Dialogue: 0,0:10:02.50,0:10:08.29,Default,,0000,0000,0000,,When banks issue loans to the public, they\Ncreate new commercial bank money. When a customer
Dialogue: 0,0:10:08.29,0:10:15.78,Default,,0000,0000,0000,,repays a loan, commercial bank money is destroyed.\NThe banks keep the interest, as profit.
Dialogue: 0,0:10:15.78,0:10:21.37,Default,,0000,0000,0000,,There's a lot of misconceptions about the\Nway banks work. There was a poll done by the
Dialogue: 0,0:10:21.37,0:10:28.39,Default,,0000,0000,0000,,Cobden Centre where they asked people how\Nthey thought banks actually operated. Around
Dialogue: 0,0:10:28.39,0:10:32.72,Default,,0000,0000,0000,,30% of the public think that when you put\Nyour money into the bank it just stays there
Dialogue: 0,0:10:32.72,0:10:43.100,Default,,0000,0000,0000,,and its safe and you can understand why because\Nevery child has a piggy and you spend it.
Dialogue: 0,0:10:43.100,0:10:49.47,Default,,0000,0000,0000,,So a lot of people keep this idea of banking,\Nit's somewhere safe to keep your money so that
Dialogue: 0,0:10:49.47,0:10:56.55,Default,,0000,0000,0000,,it's there whenever you need it. Another,\Nthe other 60% of people assume that when you
Dialogue: 0,0:10:56.55,0:11:00.63,Default,,0000,0000,0000,,put your money in that money is the same being\Nmoved across to somebody who wants to borrow
Dialogue: 0,0:11:00.63,0:11:06.66,Default,,0000,0000,0000,,it. So you have a pensioner who keeps saving\Nmoney her entire life and then her life savings
Dialogue: 0,0:11:06.66,0:11:11.82,Default,,0000,0000,0000,,have been lent to some young people who want\Nto buy a house. But actually banks don't work
Dialogue: 0,0:11:11.82,0:11:26.53,Default,,0000,0000,0000,,like that.
Dialogue: 0,0:11:26.53,0:11:33.50,Default,,0000,0000,0000,,At the moment in the UK money creation and\Ncontrol is largely in the hands of private
Dialogue: 0,0:11:33.50,0:11:43.08,Default,,0000,0000,0000,,banks. About 97 to 98% of money that's created\Nis created as bank "debt money", you can call
Dialogue: 0,0:11:43.08,0:11:50.06,Default,,0000,0000,0000,,it, when banks issue money into circulation\Nas loans essentially. This is a very poorly
Dialogue: 0,0:11:50.06,0:11:52.97,Default,,0000,0000,0000,,understood fact.
Dialogue: 0,0:11:52.97,0:11:59.91,Default,,0000,0000,0000,,It's not a conspiracy theory, it's not a crackpot\Ntheory, it's the way the Bank of England describes
Dialogue: 0,0:11:59.91,0:12:08.44,Default,,0000,0000,0000,,the process. When banks make loans they create\Nnew money.
Dialogue: 0,0:12:08.44,0:12:19.23,Default,,0000,0000,0000,,A few economists will realise the way the\Nmoney system works but if you don't realise
Dialogue: 0,0:12:19.23,0:12:24.30,Default,,0000,0000,0000,,the way that money works and you think that\Neveryone saving is going to work well for
Dialogue: 0,0:12:24.30,0:12:28.16,Default,,0000,0000,0000,,the economy. What really happens once you\Nunderstand the way the money system works
Dialogue: 0,0:12:28.16,0:12:33.96,Default,,0000,0000,0000,,is that if everybody starts saving, the amount\Nof money in the economy shrinks and we have
Dialogue: 0,0:12:33.96,0:12:38.71,Default,,0000,0000,0000,,a recession. So most economists don't have\Nthis full picture. They don't understand all
Dialogue: 0,0:12:38.71,0:12:46.65,Default,,0000,0000,0000,,the elements of the system. They rely on assumptions,\Non received knowledge without actually going
Dialogue: 0,0:12:46.65,0:12:52.100,Default,,0000,0000,0000,,into the details, and money is the centre of\Nthe economy. If you don't understand where
Dialogue: 0,0:12:52.100,0:12:59.100,Default,,0000,0000,0000,,it comes from, who creates it and when it\Ngets created then how can you understand the
Dialogue: 0,0:12:59.100,0:13:05.68,Default,,0000,0000,0000,,entire economy?
Dialogue: 0,0:13:05.68,0:13:11.72,Default,,0000,0000,0000,,When the vast majority of money that we use\Nnow is not cash but its electronic money then
Dialogue: 0,0:13:11.72,0:13:15.57,Default,,0000,0000,0000,,whoever's creating the electronic money is\Ngetting the proceeds of creating that money
Dialogue: 0,0:13:15.57,0:13:19.33,Default,,0000,0000,0000,,and obviously creating electronic money is\Nmuch more profitable than creating cash because
Dialogue: 0,0:13:19.33,0:13:25.79,Default,,0000,0000,0000,,you don't have any production cost at all.\NSo while we've got £18 billion over the course
Dialogue: 0,0:13:25.79,0:13:33.62,Default,,0000,0000,0000,,of the decade in profit from creating cash,\Nthe banks have actually created £1.2 trillion.
Dialogue: 0,0:13:33.62,0:13:40.96,Default,,0000,0000,0000,,Between 1998 and 2007 the UK money supply\Ntripled. £1.2 trillion pounds was created
Dialogue: 0,0:13:40.96,0:13:48.57,Default,,0000,0000,0000,,by banks, whilst £18 billion was created\Nby the Treasury.
Dialogue: 0,0:13:48.57,0:13:52.54,Default,,0000,0000,0000,,A lot of people think when I say this or when\Nyou say this or when Positive Money say this
Dialogue: 0,0:13:52.54,0:13:58.53,Default,,0000,0000,0000,,that we are all a bunch of nutters. But on\Nthe 9th of March in 2009, the governor of
Dialogue: 0,0:13:58.53,0:14:04.43,Default,,0000,0000,0000,,the Federal Reserve, Ben Bernanke gave the\Nfirst ever broadcast interview, the governor
Dialogue: 0,0:14:04.43,0:14:09.66,Default,,0000,0000,0000,,of the central bank of the United States of\NAmerica had ever given and the day before
Dialogue: 0,0:14:09.66,0:14:16.71,Default,,0000,0000,0000,,that he bailed out AIG which is an insurance\Ncompany, not even a bank actually to the tune
Dialogue: 0,0:14:16.71,0:14:22.00,Default,,0000,0000,0000,,of about a US$160 billion. So the journalist\Nsays to him: "Now Mr. Bernanke where did you
Dialogue: 0,0:14:22.00,0:14:25.99,Default,,0000,0000,0000,,get $160 billion to bail out AIG?"
Dialogue: 0,0:14:25.99,0:14:27.53,Default,,0000,0000,0000,,JOURNALIST: Is that tax money that the Fed\Nis spending?
Dialogue: 0,0:14:27.53,0:14:34.80,Default,,0000,0000,0000,,BERNANKE: It's not tax money. The banks have\Naccounts with the Fed, much the same way that
Dialogue: 0,0:14:34.80,0:14:39.92,Default,,0000,0000,0000,,you have an account in a commercial bank.\NSo to lend to a bank we simply use the computer
Dialogue: 0,0:14:39.92,0:14:45.15,Default,,0000,0000,0000,,to mark up the size of the account they have\Nwith the Fed. So it's much more akin, although
Dialogue: 0,0:14:45.15,0:14:49.40,Default,,0000,0000,0000,,not exactly the same, to printing money than\Nit is to borrowing.
Dialogue: 0,0:14:49.40,0:14:56.54,Default,,0000,0000,0000,,I found that talking on the door step from\NAugust last year around to August 2009 around
Dialogue: 0,0:14:56.54,0:15:04.46,Default,,0000,0000,0000,,to general election 8-9 months I suppose knocking\Non the doors, is that we tried to explain
Dialogue: 0,0:15:04.46,0:15:13.02,Default,,0000,0000,0000,,how the money system works, there's an almost\Nin-built refusal of people to accept that
Dialogue: 0,0:15:13.02,0:15:21.12,Default,,0000,0000,0000,,such a bizarre situation could actually exist.\N"Ah no, it can't possibly. What do you mean?
Dialogue: 0,0:15:21.12,0:15:25.57,Default,,0000,0000,0000,,It can't...banks can't...banks don't create\Nmoney out of thin air. That's ridiculous.
Dialogue: 0,0:15:25.57,0:15:30.52,Default,,0000,0000,0000,,They can't do that. They lend out their depositors'\Nmoney." Most people have an idea of how money
Dialogue: 0,0:15:30.52,0:15:36.96,Default,,0000,0000,0000,,is. They are used to their own way of handling\Nmoney and they try and implement their own
Dialogue: 0,0:15:36.96,0:15:43.66,Default,,0000,0000,0000,,idea of how their small household economy\Nworks into the national economy. And of course
Dialogue: 0,0:15:43.66,0:15:48.05,Default,,0000,0000,0000,,it just doesn't work out, it just doesn't\Nwork out at all.
Dialogue: 0,0:15:48.05,0:15:53.30,Default,,0000,0000,0000,,NARRATOR: By 2008 the outstanding loan portfolio\Nof bank created credit, also known as commercial
Dialogue: 0,0:15:53.30,0:15:57.76,Default,,0000,0000,0000,,bank money, stood at over £2 trillion.
Dialogue: 0,0:15:57.76,0:16:05.58,Default,,0000,0000,0000,,As recently as 1982 the ratio of notes and\Ncoins to bank deposits was 1:12. By 2010 the
Dialogue: 0,0:16:05.58,0:16:14.35,Default,,0000,0000,0000,,ratio had risen to 1:37, that is for every\Npound of treasury-created money,
Dialogue: 0,0:16:14.35,0:16:18.100,Default,,0000,0000,0000,,there were 37 pounds of bank-created money.
Dialogue: 0,0:16:18.100,0:16:25.55,Default,,0000,0000,0000,,In the 10 years prior to the 2007 crisis,\Nthe UK commercial bank money supply expanded
Dialogue: 0,0:16:25.55,0:16:28.58,Default,,0000,0000,0000,,by between 7 to 10% every year.
Dialogue: 0,0:16:28.58,0:16:35.40,Default,,0000,0000,0000,,A growth rate of 7% is the equivalent of doubling\Nthe money supply every 10 years.
Dialogue: 0,0:16:35.40,0:16:40.84,Default,,0000,0000,0000,,DYSON: The amount of money they're creating\Nout of nothing is just incredible, £1.2 trillion
Dialogue: 0,0:16:40.84,0:16:47.08,Default,,0000,0000,0000,,in the last 10 years. That money is being\Ndistributed according to the priorities of
Dialogue: 0,0:16:47.08,0:16:51.93,Default,,0000,0000,0000,,the banking sector, not the priorities of\Nsociety.
Dialogue: 0,0:16:51.93,0:17:02.92,Default,,0000,0000,0000,,The banking sector itself grew from 1980,\N$2.5 trillion to $40 trillion by assets. In
Dialogue: 0,0:17:02.92,0:17:09.65,Default,,0000,0000,0000,,1980, global bank assets were worth 20 times\Nthe then global economy. By 2006 they were
Dialogue: 0,0:17:09.65,0:17:13.11,Default,,0000,0000,0000,,worth 75 times according to the UN.
Dialogue: 0,0:17:13.11,0:17:20.22,Default,,0000,0000,0000,,NARRATOR: As the following chart shows, total\Nbank assets of UK banks as a percentage of
Dialogue: 0,0:17:20.22,0:17:28.38,Default,,0000,0000,0000,,GDP remained relatively stable at 50-60%,\Nup to the end of the 1960s. After that they
Dialogue: 0,0:17:28.38,0:17:29.99,Default,,0000,0000,0000,,shot up dramatically.
Dialogue: 0,0:17:29.99,0:17:35.26,Default,,0000,0000,0000,,And the real money in the world to be made\Ntoday is not by producing anything at all.
Dialogue: 0,0:17:35.26,0:17:40.91,Default,,0000,0000,0000,,It's simply by forms of speculating. Basically,\Nmaking money from money. That's the most profitable
Dialogue: 0,0:17:40.91,0:17:49.60,Default,,0000,0000,0000,,and by far and away the biggest form of economic\Nactivity that exists in the world today.
Dialogue: 0,0:17:49.60,0:17:56.99,Default,,0000,0000,0000,,NARRATOR: Today, banks are no longer restricted\Nby how much they can lend, and as such how
Dialogue: 0,0:17:56.99,0:18:03.47,Default,,0000,0000,0000,,much new credit they can create out of nothing.\NThey are restricted solely by their own willingness
Dialogue: 0,0:18:03.47,0:18:05.66,Default,,0000,0000,0000,,to lend.
Dialogue: 0,0:18:05.66,0:18:11.82,Default,,0000,0000,0000,,DYSON: The issue with allowing banks to create\Nmoney, there's two main issues. Firstly, the
Dialogue: 0,0:18:11.82,0:18:17.19,Default,,0000,0000,0000,,fact that they create this money when they\Nmake loans. So it guarantees that we have
Dialogue: 0,0:18:17.19,0:18:20.93,Default,,0000,0000,0000,,to borrow all our money for the economy from\Nthe banks.
Dialogue: 0,0:18:20.93,0:18:25.78,Default,,0000,0000,0000,,NARRATOR: As such, to have a healthy, growing\Neconomy the government needs to put in place
Dialogue: 0,0:18:25.78,0:18:30.85,Default,,0000,0000,0000,,strategies to allow for ever-increasing debt.
Dialogue: 0,0:18:30.85,0:18:35.94,Default,,0000,0000,0000,,The only way the government can create additional\Npurchasing power is by getting itself and
Dialogue: 0,0:18:35.94,0:18:37.72,Default,,0000,0000,0000,,us, into more debt.
Dialogue: 0,0:18:37.72,0:18:44.35,Default,,0000,0000,0000,,DYSON: The second big issue with allowing\Nthe banks to create money is that they have
Dialogue: 0,0:18:44.35,0:18:48.83,Default,,0000,0000,0000,,the incentive to always create more.  They\Ncreate more money if they issue a loan.
Dialogue: 0,0:18:48.83,0:18:53.84,Default,,0000,0000,0000,,They get the bonuses, the commissions and\Nthe incentives to lend as much as possible.
Dialogue: 0,0:18:53.84,0:18:55.90,Default,,0000,0000,0000,,You have to develop a sales culture.  What
Dialogue: 0,0:18:55.90,0:19:01.02,Default,,0000,0000,0000,,did they do?  They recruited an amazing guy\N– a lovely guy – Andy Hornby, who came
Dialogue: 0,0:19:01.02,0:19:07.35,Default,,0000,0000,0000,,from Asda, to turn the bank into a supermarket\Nretailing operation.
Dialogue: 0,0:19:07.35,0:19:10.32,Default,,0000,0000,0000,,If you trust bankers to control the money
Dialogue: 0,0:19:10.32,0:19:14.63,Default,,0000,0000,0000,,supply, the money supply will just grow and\Ngrow and grow, as will the level of debt,
Dialogue: 0,0:19:14.63,0:19:19.73,Default,,0000,0000,0000,,until the point where it crashes, when some\Npeople can't repay the debt and then they'll
Dialogue: 0,0:19:19.73,0:19:22.42,Default,,0000,0000,0000,,stop lending.
Dialogue: 0,0:19:22.42,0:19:26.69,Default,,0000,0000,0000,,You hear politicians and journalists saying,\Nwe've been living beyond our means; we've
Dialogue: 0,0:19:26.69,0:19:32.81,Default,,0000,0000,0000,,become dependent on debt.  We need to reign\Nin our spending and live within our means.
Dialogue: 0,0:19:32.81,0:19:37.68,Default,,0000,0000,0000,,It's not possible in the current system. \NThe reason why everyone is in debt now is
Dialogue: 0,0:19:37.68,0:19:43.03,Default,,0000,0000,0000,,not because they have been recklessly borrowing. \NWe haven't borrowed all this money from an
Dialogue: 0,0:19:43.03,0:19:47.80,Default,,0000,0000,0000,,army of pensioners who've been saving up their\Nwhole lives.  Money in the current system
Dialogue: 0,0:19:47.80,0:19:53.54,Default,,0000,0000,0000,,is debt.  It's created when the banks make\Nloans.  So the only way, in the current system,
Dialogue: 0,0:19:53.54,0:19:57.60,Default,,0000,0000,0000,,that we can have any money in the economy\N– the only way we can have money for business
Dialogue: 0,0:19:57.60,0:20:02.09,Default,,0000,0000,0000,,to trade – is if we've borrowed it all from\Nthe banks.
Dialogue: 0,0:20:02.09,0:20:06.38,Default,,0000,0000,0000,,And it's the very opposite of what the Tory
Dialogue: 0,0:20:06.38,0:20:11.43,Default,,0000,0000,0000,,Party is arguing today, which is that you\Nhave to create savings before you can help
Dialogue: 0,0:20:11.43,0:20:16.85,Default,,0000,0000,0000,,the National Health Service.  And it's because\Neconomists have completely confused those
Dialogue: 0,0:20:16.85,0:20:21.80,Default,,0000,0000,0000,,things, both in monetary policy terms, but\Nalso in economic thinking, and because most
Dialogue: 0,0:20:21.80,0:20:27.87,Default,,0000,0000,0000,,people still harbour the old fashioned view\Nthat you need savings before you can invest,
Dialogue: 0,0:20:27.87,0:20:34.00,Default,,0000,0000,0000,,that we have the mess that we're in today. \NNow, one of the reasons why we find it difficult
Dialogue: 0,0:20:34.00,0:20:39.30,Default,,0000,0000,0000,,to understand the banking system and credit\Ncreation is that we leave school without any
Dialogue: 0,0:20:39.30,0:20:45.34,Default,,0000,0000,0000,,money and we go and get a job working as an\Napprentice to a plumber. We work really hard
Dialogue: 0,0:20:45.34,0:20:50.30,Default,,0000,0000,0000,,all month and at the end of the month somebody\Nputs money in our bank, and so for us the
Dialogue: 0,0:20:50.30,0:20:55.85,Default,,0000,0000,0000,,logic is: you work and then you get money\N– you get savings.  In reality you would
Dialogue: 0,0:20:55.85,0:21:01.56,Default,,0000,0000,0000,,never have got that job if credit hadn't been\Ncreated in the first instance.  It's a really
Dialogue: 0,0:21:01.56,0:21:09.42,Default,,0000,0000,0000,,important conceptual misunderstanding and\Nit isn't something that the public just is
Dialogue: 0,0:21:09.42,0:21:11.83,Default,,0000,0000,0000,,guilty of.  Economists don't understand this\Nstuff.
Dialogue: 0,0:21:11.83,0:21:13.61,Default,,0000,0000,0000,,ANNE BELSEY: Money doesn't just come out of
Dialogue: 0,0:21:13.61,0:21:18.30,Default,,0000,0000,0000,,economic activity.  A lot of people have\Ncome across - kind of assume - that if you
Dialogue: 0,0:21:18.30,0:21:24.82,Default,,0000,0000,0000,,have got businesses, and you've got people\Ndoing things, that somehow money somehow emerges
Dialogue: 0,0:21:24.82,0:21:29.78,Default,,0000,0000,0000,,out of the process of people doing things,\Nmaking things and growing things, selling
Dialogue: 0,0:21:29.78,0:21:34.63,Default,,0000,0000,0000,,things and producing things, that somehow\Nmoney just emerges.  It's not. It's like
Dialogue: 0,0:21:34.63,0:21:36.89,Default,,0000,0000,0000,,oiling a car. You have to put it in.
Dialogue: 0,0:21:36.89,0:21:42.86,Default,,0000,0000,0000,,When I see David Cameron talking about how\Nwe need an economy not based on debt, but
Dialogue: 0,0:21:42.86,0:21:47.68,Default,,0000,0000,0000,,we need an economy based on savings, he just\Ndoesn't know what he's saying.  It's ridiculous.
Dialogue: 0,0:21:47.68,0:21:53.66,Default,,0000,0000,0000,,It's absolutely absurd and it shows his complete\Nlack of understanding of how our money system
Dialogue: 0,0:21:53.66,0:21:54.50,Default,,0000,0000,0000,,actually works.
Dialogue: 0,0:21:54.50,0:21:59.42,Default,,0000,0000,0000,,You know, it's a paradox under the current\Nsystem.  If we as the public go into further
Dialogue: 0,0:21:59.42,0:22:03.19,Default,,0000,0000,0000,,debt, then that's going to put more money\Ninto the economy and we're going to have a
Dialogue: 0,0:22:03.19,0:22:07.36,Default,,0000,0000,0000,,boom.  When you have a boom, it's easier\Nto borrow, so people get into even more debt.
Dialogue: 0,0:22:07.36,0:22:12.36,Default,,0000,0000,0000,,And eventually this cycle continues. It gets\Neasier and easier to get into debt until some
Dialogue: 0,0:22:12.36,0:22:18.17,Default,,0000,0000,0000,,people get over-indebted and then they default. \NThey can't re-pay their mortgage.  That's
Dialogue: 0,0:22:18.17,0:22:25.58,Default,,0000,0000,0000,,what happened first in sub-prime America. \NAnd then it brings through a wave of defaults,
Dialogue: 0,0:22:25.58,0:22:30.64,Default,,0000,0000,0000,,which will ripple across the entire economy. \NThe banks go insolvent.  Then we're into
Dialogue: 0,0:22:30.64,0:22:37.57,Default,,0000,0000,0000,,a financial crisis and then the banks stop\Nlending.  They were excessively lending in
Dialogue: 0,0:22:37.57,0:22:43.08,Default,,0000,0000,0000,,the boom and then they stop lending and that\Nmakes the recession even worse.  People lose
Dialogue: 0,0:22:43.08,0:22:48.17,Default,,0000,0000,0000,,their jobs and then they become even more\Ndependent on debt just to survive, basically.
Dialogue: 0,0:22:48.17,0:22:53.38,Default,,0000,0000,0000,,You know we have a system where we have to\Nborrow in order to have an economy.  We have
Dialogue: 0,0:22:53.38,0:22:59.72,Default,,0000,0000,0000,,to be in debt to the banks.  That guarantees\Na massive profit for the banks.
Dialogue: 0,0:22:59.72,0:23:01.86,Default,,0000,0000,0000,,NARRATOR: This is the boom-bust cycle.
Dialogue: 0,0:23:01.86,0:23:12.32,Default,,0000,0000,0000,,GORDON BROWN: "And I've said before, Mr Deputy\NSpeaker, no return to boom and bust."
Dialogue: 0,0:23:12.32,0:23:19.40,Default,,0000,0000,0000,,NARRATOR: Net bank lending must forever increase.
Dialogue: 0,0:23:19.40,0:23:24.21,Default,,0000,0000,0000,,We are paying interest on every single pound.
Dialogue: 0,0:23:24.21,0:23:28.66,Default,,0000,0000,0000,,Even if you think the money belongs to you,\Nsomebody somewhere is paying interest on that
Dialogue: 0,0:23:28.66,0:23:28.82,Default,,0000,0000,0000,,money.
Dialogue: 0,0:23:28.82,0:23:35.26,Default,,0000,0000,0000,,The banking system has such a huge impact\Non the world, but only because it supplies
Dialogue: 0,0:23:35.26,0:23:40.35,Default,,0000,0000,0000,,our nation's money supply.  We have to protect\Nthem. We have to subsidise them.  We have
Dialogue: 0,0:23:40.35,0:23:46.89,Default,,0000,0000,0000,,to allow them to continue, because the disaster\Nof a bank collapse, affects us all in a huge
Dialogue: 0,0:23:46.89,0:23:52.25,Default,,0000,0000,0000,,way.  Anyone who says that we shouldn't have\Nbailed out the banks doesn't quite understand
Dialogue: 0,0:23:52.25,0:23:57.72,Default,,0000,0000,0000,,the nature of our monetary system.  That's\Nlike eliminating a huge chunk of our money.
Dialogue: 0,0:23:57.72,0:24:03.87,Default,,0000,0000,0000,,But also, bailing out the banks is perpetuating\Na system which is never going to work anyway.
Dialogue: 0,0:24:03.87,0:24:08.62,Default,,0000,0000,0000,,So whatever we do, we are always going to\Nhave this cycle until we separate how money
Dialogue: 0,0:24:08.62,0:24:12.72,Default,,0000,0000,0000,,is created and the activities of banking. \NThen the banks could do as they wish.  They'd
Dialogue: 0,0:24:12.72,0:24:15.39,Default,,0000,0000,0000,,be a normal business like everyone else.
Dialogue: 0,0:24:15.39,0:24:22.14,Default,,0000,0000,0000,,There's a major democratic issue here as well. \NYou have these private, profit-seeking banks
Dialogue: 0,0:24:22.14,0:24:26.76,Default,,0000,0000,0000,,creating up to 200 billion pounds a year and\Npumping that into the economy wherever they
Dialogue: 0,0:24:26.76,0:24:32.96,Default,,0000,0000,0000,,want, basically, wherever it suits them, whether\Nthey're pumping it into these toxic derivatives,
Dialogue: 0,0:24:32.96,0:24:38.50,Default,,0000,0000,0000,,or putting money into housing bubbles, just\Nmaking housing more expensive.  200 billion
Dialogue: 0,0:24:38.50,0:24:44.89,Default,,0000,0000,0000,,pounds in 2007 of new money coming into the\Neconomy, created out of nothing; and where
Dialogue: 0,0:24:44.89,0:24:49.96,Default,,0000,0000,0000,,that gets spent determines the shape of our\Neconomy effectively.  So if we are going
Dialogue: 0,0:24:49.96,0:24:54.20,Default,,0000,0000,0000,,to allow anybody to create new money out of\Nnothing, then we should at least have some
Dialogue: 0,0:24:54.20,0:24:59.19,Default,,0000,0000,0000,,democratic control over how that money's used. \NI mean, would we rather have had that money
Dialogue: 0,0:24:59.19,0:25:03.79,Default,,0000,0000,0000,,used for health care, or to deal with some\Nof the environmental issues, or to reduce
Dialogue: 0,0:25:03.79,0:25:07.93,Default,,0000,0000,0000,,poverty, or would we rather have it to make\Nhouses more expensive so none of us can afford
Dialogue: 0,0:25:07.93,0:25:13.83,Default,,0000,0000,0000,,to live in a house.
Dialogue: 0,0:25:13.83,0:25:22.05,Default,,0000,0000,0000,,You can see it as a subsidy, a special super\Nsubsidy to the banks, for the right to create
Dialogue: 0,0:25:22.05,0:25:28.32,Default,,0000,0000,0000,,money, which should be for the benefit of\Nthe public and spent through a democratic
Dialogue: 0,0:25:28.32,0:25:32.70,Default,,0000,0000,0000,,process.
Dialogue: 0,0:25:32.70,0:25:37.20,Default,,0000,0000,0000,,Banks are the most heavily subsidised businesses\Nin the world, specially protected by governments.
Dialogue: 0,0:25:37.20,0:25:43.14,Default,,0000,0000,0000,,While the money runs out for the rest of us,\Nthe largest private banks still thrive.
Dialogue: 0,0:25:43.14,0:25:50.14,Default,,0000,0000,0000,,This is because they get the biggest subsidy\Nof them all: the licence to print money.
Dialogue: 0,0:25:50.14,0:25:52.61,Default,,0000,0000,0000,,Hard to believe?  Martin Wolf, the Chief
Dialogue: 0,0:25:52.61,0:25:56.87,Default,,0000,0000,0000,,Economics Editor of the Financial Times, said\Nit recently: "The essence of the contemporary
Dialogue: 0,0:25:56.87,0:26:02.53,Default,,0000,0000,0000,,monetary system is the creation of money out\Nof nothing by private banks' often foolish
Dialogue: 0,0:26:02.53,0:26:03.84,Default,,0000,0000,0000,,lending…"
Dialogue: 0,0:26:03.84,0:26:09.96,Default,,0000,0000,0000,,You heard that right.  Private banks create\Nmoney out of nothing.  Then, they loan it
Dialogue: 0,0:26:09.96,0:26:15.58,Default,,0000,0000,0000,,to us and ask for interest on top.  If you've\Never wondered why the bank buildings around
Dialogue: 0,0:26:15.58,0:26:20.01,Default,,0000,0000,0000,,the world soar higher than any palace or spire\Never did, you now have the answer.
Dialogue: 0,0:26:20.01,0:26:23.09,Default,,0000,0000,0000,,But the banks don't simply print money using
Dialogue: 0,0:26:23.09,0:26:27.56,Default,,0000,0000,0000,,secret printing presses in their basements. \NThey don't have to.  Like so many other things
Dialogue: 0,0:26:27.56,0:26:31.03,Default,,0000,0000,0000,,these days, printing money has now gone digital.
Dialogue: 0,0:26:31.03,0:26:36.28,Default,,0000,0000,0000,,With the popular use of debit cards, electronic\Nfund transfers and internet banking, only
Dialogue: 0,0:26:36.28,0:26:43.58,Default,,0000,0000,0000,,3% of the money in the UK is now made of paper\Nand metal coin.  The other 97% is entirely
Dialogue: 0,0:26:43.58,0:26:48.77,Default,,0000,0000,0000,,on computers.  Electronic money is convenient\Nfor everyone, but it's especially convenient
Dialogue: 0,0:26:48.77,0:26:56.09,Default,,0000,0000,0000,,for the private banks, since they own, run\Nand control the entire digital money system.
Dialogue: 0,0:26:56.09,0:26:57.97,Default,,0000,0000,0000,,And what do they do with this special privilege?
Dialogue: 0,0:26:57.97,0:27:02.65,Default,,0000,0000,0000,,Do they channel new money, the blood supply\Nof the nation, towards the things we need
Dialogue: 0,0:27:02.65,0:27:07.73,Default,,0000,0000,0000,,like hospitals, schools, universities and\Npublic transport?
Dialogue: 0,0:27:07.73,0:27:10.52,Default,,0000,0000,0000,,Not if it doesn't make a profit for them.
Dialogue: 0,0:27:10.52,0:27:15.89,Default,,0000,0000,0000,,Instead, they use their licence to print money\Nto gamble on the financial markets and push
Dialogue: 0,0:27:15.89,0:27:20.37,Default,,0000,0000,0000,,house prices out of reach of ordinary people\Nby pumping hundreds of billions of pounds
Dialogue: 0,0:27:20.37,0:27:26.98,Default,,0000,0000,0000,,into risky mortgages.  This is exactly how\Nthe banks caused the financial crisis and
Dialogue: 0,0:27:26.98,0:27:33.86,Default,,0000,0000,0000,,now the rest of us are being asked to pay\Nfor it.
Dialogue: 0,0:27:33.86,0:27:36.25,Default,,0000,0000,0000,,If we can't afford to run hospitals and build
Dialogue: 0,0:27:36.25,0:27:41.63,Default,,0000,0000,0000,,schools, can we really afford to subsidize\Nthe financial industry?  Should we have to
Dialogue: 0,0:27:41.63,0:27:44.32,Default,,0000,0000,0000,,live with less so the bankers can have more?
Dialogue: 0,0:27:44.32,0:27:51.27,Default,,0000,0000,0000,,This is ludicrous and it's time to put a stop\Nto it.  The private banks can't be trusted
Dialogue: 0,0:27:51.27,0:27:54.32,Default,,0000,0000,0000,,to hold the reigns to our entire economy.
Dialogue: 0,0:27:54.32,0:27:59.09,Default,,0000,0000,0000,,We need to take away the banks' power to create\Nmoney out of nothing.  This will stop them
Dialogue: 0,0:27:59.09,0:28:03.93,Default,,0000,0000,0000,,from causing yet another financial meltdown\Nand allow us to afford the crucial services
Dialogue: 0,0:28:03.93,0:28:11.00,Default,,0000,0000,0000,,that we as a society need.
Dialogue: 0,0:28:11.00,0:28:17.42,Default,,0000,0000,0000,,If you want a growing economy, under the current\Nset-up, we have to have growing debt.  This
Dialogue: 0,0:28:17.42,0:28:22.19,Default,,0000,0000,0000,,is something very, very few people really\Nunderstand, especially the politicians who
Dialogue: 0,0:28:22.19,0:28:32.00,Default,,0000,0000,0000,,are managing the economy, which is a scary\Nthought.
Dialogue: 0,0:28:32.00,0:28:33.99,Default,,0000,0000,0000,,NARRATOR: As the money supply grows, more
Dialogue: 0,0:28:33.99,0:28:40.52,Default,,0000,0000,0000,,money is available, which can be invested\Nin productive avenues.  However, it can also
Dialogue: 0,0:28:40.52,0:28:57.00,Default,,0000,0000,0000,,be used to gamble and drive up asset prices.
Dialogue: 0,0:28:57.00,0:29:00.46,Default,,0000,0000,0000,,NARRATOR: Inflation is a rise in the general
Dialogue: 0,0:29:00.46,0:29:07.17,Default,,0000,0000,0000,,level of the prices of goods and services\Nin an economy over a period of time.  When
Dialogue: 0,0:29:07.17,0:29:13.99,Default,,0000,0000,0000,,the general price level rises each unit of\Ncurrency buys fewer goods and services.
Dialogue: 0,0:29:13.99,0:29:18.13,Default,,0000,0000,0000,,As the money supply grows, and there is more\Ncurrency available, more money is available
Dialogue: 0,0:29:18.13,0:29:23.99,Default,,0000,0000,0000,,for investment, which can lead to growth,\Nbut more money is also available for purchases
Dialogue: 0,0:29:23.99,0:29:30.13,Default,,0000,0000,0000,,of goods and speculation, which leads to inflation.
Dialogue: 0,0:29:30.13,0:29:38.58,Default,,0000,0000,0000,,Essentially, inflation is what happens when\Ntoo much money is chasing too few goods and
Dialogue: 0,0:29:38.58,0:29:46.05,Default,,0000,0000,0000,,services, so there is too much money for the\Nactual output of the economy.
Dialogue: 0,0:29:46.05,0:29:49.35,Default,,0000,0000,0000,,In the seven years between the years 2000
Dialogue: 0,0:29:49.35,0:29:56.65,Default,,0000,0000,0000,,and 2007 the money supply doubled and the\Nessential bank, the Bank of England was under
Dialogue: 0,0:29:56.65,0:29:59.54,Default,,0000,0000,0000,,the impression at this time that they had\Nit under control, because they were saying
Dialogue: 0,0:29:59.54,0:30:03.17,Default,,0000,0000,0000,,that prices weren't going up that much. \NOf course they were only looking at prices
Dialogue: 0,0:30:03.17,0:30:08.55,Default,,0000,0000,0000,,in your local corner shop.  They weren't\Nlooking at the price of housing and housing
Dialogue: 0,0:30:08.55,0:30:13.04,Default,,0000,0000,0000,,is the biggest expenditure that most people\Nwill make.
Dialogue: 0,0:30:13.04,0:30:17.23,Default,,0000,0000,0000,,Increasing house prices, it may make you feel
Dialogue: 0,0:30:17.23,0:30:24.60,Default,,0000,0000,0000,,like you're becoming wealthier, but as your\Nwealth increases, the effect is that your
Dialogue: 0,0:30:24.60,0:30:29.90,Default,,0000,0000,0000,,children's wealth is actually decreasing. \NSo in fact there is no net gain in wealth,
Dialogue: 0,0:30:29.90,0:30:37.04,Default,,0000,0000,0000,,because your children are going to have to\Npay even more when they want to buy a house.
Dialogue: 0,0:30:37.04,0:30:40.84,Default,,0000,0000,0000,,So in effect, there is no net increase. \NThey are going to have to earn even more.
Dialogue: 0,0:30:40.84,0:30:47.89,Default,,0000,0000,0000,,They are going to have to go into even more\Ndebt.  So, rising house prices do not create
Dialogue: 0,0:30:47.89,0:30:53.51,Default,,0000,0000,0000,,additional net GDP value to the economy.
Dialogue: 0,0:30:53.51,0:30:58.87,Default,,0000,0000,0000,,Actually what they do, is re-distribute wealth\Ntowards those people who already have houses
Dialogue: 0,0:30:58.87,0:31:04.54,Default,,0000,0000,0000,,i.e. wealthier people and remove it from poorer\Npeople who can't afford to get on the housing
Dialogue: 0,0:31:04.54,0:31:10.15,Default,,0000,0000,0000,,ladder, so it's another example of a very\Nregressive policy to allow house prices to
Dialogue: 0,0:31:10.15,0:31:16.60,Default,,0000,0000,0000,,simply inflate.  It makes everybody feel\Nkind of like things are going well and people
Dialogue: 0,0:31:16.60,0:31:21.15,Default,,0000,0000,0000,,spend money on other stuff.  They take equity\Nout of their houses.  But it's not creating
Dialogue: 0,0:31:21.15,0:31:27.06,Default,,0000,0000,0000,,new jobs.  It's not enhancing the quality\Nof the economy.  It's not helping our balance
Dialogue: 0,0:31:27.06,0:31:33.72,Default,,0000,0000,0000,,of trade.  It's not helping the public deficit. It's\Na zero sum game.
Dialogue: 0,0:31:33.72,0:31:39.05,Default,,0000,0000,0000,,NARRATOR: As of August 2011, 85.5% of consumer
Dialogue: 0,0:31:39.05,0:31:43.05,Default,,0000,0000,0000,,bank lending was secured as mortgages on dwellings.
Dialogue: 0,0:31:43.05,0:31:48.17,Default,,0000,0000,0000,,If you have somebody creating money that can\Nonly be spent on one thing, which is housing,
Dialogue: 0,0:31:48.17,0:31:53.45,Default,,0000,0000,0000,,then the price of that thing is going to go\Nup.  Between 2000 and 2010 they created over
Dialogue: 0,0:31:53.45,0:31:59.08,Default,,0000,0000,0000,,a trillion pounds of new money - 500 billion\Npounds just in the three years before the
Dialogue: 0,0:31:59.08,0:32:03.57,Default,,0000,0000,0000,,crisis.  That's why house prices went up\Nthey way they were.  There's nothing special
Dialogue: 0,0:32:03.57,0:32:07.72,Default,,0000,0000,0000,,about houses.  It was just all this funny\Nmoney being pumped into that market.
Dialogue: 0,0:32:07.72,0:32:11.97,Default,,0000,0000,0000,,If money is spent into the economy, a lot
Dialogue: 0,0:32:11.97,0:32:17.84,Default,,0000,0000,0000,,of money goes into houses, for example into\Nmortgages, that's an increase in the amount
Dialogue: 0,0:32:17.84,0:32:24.97,Default,,0000,0000,0000,,of money in the economy, without a corresponding\Nincrease in activity, in output, in GDP.
Dialogue: 0,0:32:24.97,0:32:34.39,Default,,0000,0000,0000,,It's non-GDP based spending.  That's what\Ncauses inflation.  In the UK we've had it
Dialogue: 0,0:32:34.39,0:32:42.11,Default,,0000,0000,0000,,in spades.  We've had this massive housing\Nboom.  The main cause for the housing boom,
Dialogue: 0,0:32:42.11,0:32:49.00,Default,,0000,0000,0000,,in my opinion, is the huge amount of speculative\Ncredit created by the banks, to go into houses.
Dialogue: 0,0:32:48.100,0:32:56.12,Default,,0000,0000,0000,,If houses were cheaper, they would be easier\Nto build.  More of them would be built.
Dialogue: 0,0:32:56.12,0:33:02.17,Default,,0000,0000,0000,,There would be less huge houses, with hardly\Nany people in them.  London would not be
Dialogue: 0,0:33:02.17,0:33:08.79,Default,,0000,0000,0000,,the centre of a kind of very rich speculative\Norgy, where all the richest people in the
Dialogue: 0,0:33:08.79,0:33:13.67,Default,,0000,0000,0000,,world want to get a property in London, because\Nit's seen as a great asset.  Houses would
Dialogue: 0,0:33:13.67,0:33:19.17,Default,,0000,0000,0000,,be seen as places to live primarily, rather\Nthan seen as places to invest.  The important
Dialogue: 0,0:33:19.17,0:33:24.89,Default,,0000,0000,0000,,thing to think about is, if you are a bank\Nand you've got to make a loan, you have choices.
Dialogue: 0,0:33:24.89,0:33:33.17,Default,,0000,0000,0000,,You can give that loan to a small business\Nand you'll know that the risk to you of that
Dialogue: 0,0:33:33.17,0:33:38.36,Default,,0000,0000,0000,,loan failing, defaulting, is actually quite\Nhigh, because that small business, the owners
Dialogue: 0,0:33:38.36,0:33:43.63,Default,,0000,0000,0000,,of that business, have limited liability,\Nwhich means if that business goes bust, you
Dialogue: 0,0:33:43.63,0:33:50.74,Default,,0000,0000,0000,,as a bank get nothing back, essentially. \NSo that's kind of high risk, compared to loaning
Dialogue: 0,0:33:50.74,0:33:56.30,Default,,0000,0000,0000,,your money to somebody with some collateral,\Nwith a house behind them, like a mortgage.
Dialogue: 0,0:33:56.30,0:33:58.97,Default,,0000,0000,0000,,So there's a simple incentive for banks to
Dialogue: 0,0:33:58.97,0:34:06.33,Default,,0000,0000,0000,,prefer putting money into housing than into\Na small business. Now that's a real problem
Dialogue: 0,0:34:06.33,0:34:12.56,Default,,0000,0000,0000,,if you widen that out across a whole economy,\Nbecause it means there's an incentive to put
Dialogue: 0,0:34:12.56,0:34:17.74,Default,,0000,0000,0000,,money into speculative rather than productive\Ninvestment.  So again, we have to think about
Dialogue: 0,0:34:17.74,0:34:23.52,Default,,0000,0000,0000,,how we create our monetary system that is\Nmore balanced between those two kinds of speculative
Dialogue: 0,0:34:23.52,0:34:30.16,Default,,0000,0000,0000,,and productive investment.  The government\Nis showing enormous reluctance to regulate
Dialogue: 0,0:34:30.16,0:34:36.11,Default,,0000,0000,0000,,the housing market and to again regulate the\Namount of money that banks put into houses.
Dialogue: 0,0:34:36.11,0:34:38.56,Default,,0000,0000,0000,,We don't decide who creates credit for what.
Dialogue: 0,0:34:38.56,0:34:47.00,Default,,0000,0000,0000,,No, we leave that to a couple of chaps in\Na bank to decide, basically.
Dialogue: 0,0:34:47.00,0:34:56.00,Default,,0000,0000,0000,,Now, inflation can be avoided if the amount\Nof money that goes into the economy is regulated
Dialogue: 0,0:34:56.00,0:35:03.05,Default,,0000,0000,0000,,in a way that it doesn't exceed the actual\Nactivity that's happening in the economy.
Dialogue: 0,0:35:03.05,0:35:09.45,Default,,0000,0000,0000,,Now, the best way to do that, in my opinion,\Nis to make sure that money is issued into
Dialogue: 0,0:35:09.45,0:35:17.12,Default,,0000,0000,0000,,the economy only for productive investment,\Nfor productive goods and services, so money
Dialogue: 0,0:35:17.12,0:35:25.14,Default,,0000,0000,0000,,goes in to help a small business to start\Nup which creates jobs, which creates additional
Dialogue: 0,0:35:25.14,0:35:33.37,Default,,0000,0000,0000,,purchasing power which means there's no inflation.\NYou have to have a system where credit is
Dialogue: 0,0:35:33.37,0:35:39.68,Default,,0000,0000,0000,,put into productive avenues, where credit\Nis put into building high speed rail links,
Dialogue: 0,0:35:39.68,0:35:45.57,Default,,0000,0000,0000,,where credit is put into building houses rather\Nthan giving people money to inflate the price
Dialogue: 0,0:35:45.57,0:35:54.15,Default,,0000,0000,0000,,of houses. So it's quite simple, really in\Nthat way, and the current system is simply
Dialogue: 0,0:35:54.15,0:35:58.30,Default,,0000,0000,0000,,set up not to do that, basically.
Dialogue: 0,0:35:58.30,0:36:03.54,Default,,0000,0000,0000,,The creation of money by private banks for\Nnon-productive usage causes real inflation
Dialogue: 0,0:36:03.54,0:36:15.35,Default,,0000,0000,0000,,and as such it is a tax on the purchasing\Npower of the medium of exchange.
Dialogue: 0,0:36:15.35,0:36:23.03,Default,,0000,0000,0000,,The figures for the UK are quite stark actually,\Nthe average median real incomes (for the bit
Dialogue: 0,0:36:23.03,0:36:28.97,Default,,0000,0000,0000,,in the middle) for most people declined over\Nthe last 8 years. There are now in quite sharp
Dialogue: 0,0:36:28.97,0:36:33.90,Default,,0000,0000,0000,,decline as we go into recession, the sharpest\Nreally since, it looks like, since about the
Dialogue: 0,0:36:33.90,0:36:37.57,Default,,0000,0000,0000,,1930s, put it that way, so real income is\Ndeclining.
Dialogue: 0,0:36:37.57,0:36:42.18,Default,,0000,0000,0000,,NARRATOR: Bank created fiat currency allows\Nthe private banks to suck wealth from the
Dialogue: 0,0:36:42.18,0:36:48.76,Default,,0000,0000,0000,,economy and over time results in a gradual\Ndecrease in the standard of living. As people
Dialogue: 0,0:36:48.76,0:36:55.45,Default,,0000,0000,0000,,become poorer, they become even more dependent\Non debt. And this at a time when efficiency
Dialogue: 0,0:36:55.45,0:36:58.06,Default,,0000,0000,0000,,and machination have improved dramatically.
Dialogue: 0,0:36:58.06,0:37:05.16,Default,,0000,0000,0000,,If you go back to the 1960's and we were expected\Nto, we were looking forward to an age of leisure,
Dialogue: 0,0:37:05.16,0:37:11.40,Default,,0000,0000,0000,,television programmes saying, what are people\Ngoing to do with their spare time? And now
Dialogue: 0,0:37:11.40,0:37:19.32,Default,,0000,0000,0000,,we have got more people working harder than\Never. Spending more than ever, which looks
Dialogue: 0,0:37:19.32,0:37:25.72,Default,,0000,0000,0000,,great, you know, everyone is spending more,\Nbut if you're not actually benefitting from
Dialogue: 0,0:37:25.72,0:37:30.12,Default,,0000,0000,0000,,what you're spending, if you having to spend\Nthe money on childcare costs on commuting
Dialogue: 0,0:37:30.12,0:37:38.32,Default,,0000,0000,0000,,costs and so forth. Costs that people didn't\Nin the past used to have to pay because you
Dialogue: 0,0:37:38.32,0:37:44.98,Default,,0000,0000,0000,,could walk to work and one member of the family\Nwas able to stay at home and be a permanent
Dialogue: 0,0:37:44.98,0:37:50.56,Default,,0000,0000,0000,,homemaker, then you're not actually any better\Noff. Everyone is under such enormous pressures
Dialogue: 0,0:37:50.56,0:37:59.95,Default,,0000,0000,0000,,nowadays, you know, I am conscious that my\Nfour nephews and nieces are facing difficult
Dialogue: 0,0:37:59.95,0:38:09.59,Default,,0000,0000,0000,,times. They're just going to find themselves\Nhaving to work very hard just to keep a roof
Dialogue: 0,0:38:09.59,0:38:13.48,Default,,0000,0000,0000,,over their heads, to get a roof over their\Nheads.
Dialogue: 0,0:38:13.48,0:38:17.42,Default,,0000,0000,0000,,People are getting poorer in real terms, it's\Nbecause prices are always going up because
Dialogue: 0,0:38:17.42,0:38:23.60,Default,,0000,0000,0000,,all this new funny money is being pumped into\Nthe system by the banks and they're creating
Dialogue: 0,0:38:23.60,0:38:28.06,Default,,0000,0000,0000,,all this debt so at the same time as prices\Nare going up and things are getting more expensive,
Dialogue: 0,0:38:28.06,0:38:33.91,Default,,0000,0000,0000,,we're getting further and further into debt\Nand our wealth and the return that we get
Dialogue: 0,0:38:33.91,0:38:38.50,Default,,0000,0000,0000,,from actually working is getting less and\Nless all the time. You can't deal with poverty
Dialogue: 0,0:38:38.50,0:38:43.06,Default,,0000,0000,0000,,when you have a financial system and a money\Nsystem that distributes money from the poor
Dialogue: 0,0:38:43.06,0:38:49.82,Default,,0000,0000,0000,,to the very rich; any distribution that you\Ntry and do in the opposite direction is effectively
Dialogue: 0,0:38:49.82,0:38:56.81,Default,,0000,0000,0000,,pissing in the wind. If you look at issues\Nlike increasing inequality, one obvious way
Dialogue: 0,0:38:56.81,0:39:02.63,Default,,0000,0000,0000,,to tackle inequality is to have, say for example,\Na redistributive tax system. You tax the rich,
Dialogue: 0,0:39:02.63,0:39:08.18,Default,,0000,0000,0000,,you give some money to the poor. You move\Na bit of money down the scale. That's all
Dialogue: 0,0:39:08.18,0:39:13.70,Default,,0000,0000,0000,,very well but if you completely overlook the\Nfact that there's another redistributive system
Dialogue: 0,0:39:13.70,0:39:18.00,Default,,0000,0000,0000,,which is taking money from the poor and giving\Nit to the rich, then you're not really going
Dialogue: 0,0:39:18.00,0:39:25.40,Default,,0000,0000,0000,,to tackle this inequality and the way a debt-based\Nmoney system works, it guarantees that for
Dialogue: 0,0:39:25.40,0:39:29.04,Default,,0000,0000,0000,,every pound of money there's going to be a\Npound of debt. That debt is typically going
Dialogue: 0,0:39:29.04,0:39:35.30,Default,,0000,0000,0000,,to end up with the poor, the lower-middle\Nclasses, those people end up with the debt
Dialogue: 0,0:39:35.30,0:39:39.11,Default,,0000,0000,0000,,and they end up paying interest on that money\Nwhich then goes back to the banking sector
Dialogue: 0,0:39:39.11,0:39:46.15,Default,,0000,0000,0000,,and gets distributed to the people working\Nin the city or in Wall Street. What this system
Dialogue: 0,0:39:46.15,0:39:51.96,Default,,0000,0000,0000,,does overall is it distributes money from\Nthe poor to the rich essentially, distributes
Dialogue: 0,0:39:51.96,0:39:59.20,Default,,0000,0000,0000,,money from the poorer regions of the UK back\Nto the City of London and it also distributes
Dialogue: 0,0:39:59.20,0:40:05.48,Default,,0000,0000,0000,,money from all the small businesses, all the\Nlittle factories around the UK and distributes
Dialogue: 0,0:40:05.48,0:40:07.85,Default,,0000,0000,0000,,that money back into the financial sector.
Dialogue: 0,0:40:07.85,0:40:14.30,Default,,0000,0000,0000,,We have a system, where by, the activity of\Nactually supplying occurs under the very same
Dialogue: 0,0:40:14.30,0:40:20.21,Default,,0000,0000,0000,,roof as the same organisation that is responsible\Nfor profiting from putting together borrowers
Dialogue: 0,0:40:20.21,0:40:28.72,Default,,0000,0000,0000,,and lenders i.e. a bank. So, a bank creates\Nour nation's money supply as well as making
Dialogue: 0,0:40:28.72,0:40:30.96,Default,,0000,0000,0000,,loans for profit.
Dialogue: 0,0:40:30.96,0:40:35.74,Default,,0000,0000,0000,,NARRATOR: The government cannot allow the\Nbanking system to fail, because if it did,
Dialogue: 0,0:40:35.74,0:40:42.47,Default,,0000,0000,0000,,over 97% of all money would disappear. This\Nis why in the event of a crisis, the risk
Dialogue: 0,0:40:42.47,0:40:48.91,Default,,0000,0000,0000,,is transferred to the taxpayer. But even during\Nnormal times banks receive numerous guarantees
Dialogue: 0,0:40:48.91,0:40:51.35,Default,,0000,0000,0000,,and benefits beyond the right to create money.
Dialogue: 0,0:40:51.35,0:40:56.57,Default,,0000,0000,0000,,Bill, by the way, I know the Bank of America\Nis a very big bank, it happens that I have
Dialogue: 0,0:40:56.57,0:41:01.40,Default,,0000,0000,0000,,32 dollars there myself. Just between us what\Nassurance do I have that this money is safe?
Dialogue: 0,0:41:01.40,0:41:08.38,Default,,0000,0000,0000,,Well, all deposits up to ten thousand dollars\Nare insured by the federal government in Washington.
Dialogue: 0,0:41:08.38,0:41:14.61,Default,,0000,0000,0000,,That's my guarantee? Yes. Have you heard that\Nthe federal government is about 280 billion
Dialogue: 0,0:41:14.61,0:41:18.51,Default,,0000,0000,0000,,dollars in the hole?
Dialogue: 0,0:41:18.51,0:41:23.75,Default,,0000,0000,0000,,NARRATOR: Banks receive large safety nets\Nfrom the government. The taxpayer guarantees
Dialogue: 0,0:41:23.75,0:41:30.66,Default,,0000,0000,0000,,£85,000 as deposit insurance. And the Bank\Nof England provides liquidity insurance, in
Dialogue: 0,0:41:30.66,0:41:37.99,Default,,0000,0000,0000,,case a bank runs out of reserve currency.
Dialogue: 0,0:41:37.99,0:41:41.17,Default,,0000,0000,0000,,It's questionable whether we're going to get\Nout of this recession or whether we'll just
Dialogue: 0,0:41:41.17,0:41:47.37,Default,,0000,0000,0000,,keep ticking along the way the way that we\Nare now. However if we do, then when we come
Dialogue: 0,0:41:47.37,0:41:51.78,Default,,0000,0000,0000,,out of this recession and when growth starts\Nagain, look at what happens to debt, it will
Dialogue: 0,0:41:51.78,0:41:55.49,Default,,0000,0000,0000,,rise and it will keep rising and the faster\Nthe economy is growing, the faster the debt
Dialogue: 0,0:41:55.49,0:42:02.11,Default,,0000,0000,0000,,will rise and then give it another 3 to 5\Nyears, we'll be back where we were, the debt
Dialogue: 0,0:42:02.11,0:42:06.59,Default,,0000,0000,0000,,will become too much, people will start defaulting\Nagain. It's kind of the system that we're
Dialogue: 0,0:42:06.59,0:42:11.56,Default,,0000,0000,0000,,locked into now is that we can't grow the\Neconomy without growing the debt and the debt
Dialogue: 0,0:42:11.56,0:42:15.95,Default,,0000,0000,0000,,is the very thing that will bring down the\Neconomy. The only option going forward is
Dialogue: 0,0:42:15.95,0:42:21.65,Default,,0000,0000,0000,,to reform it, to stop banks from creating\Nmoney as debt. By fixing the monetary system
Dialogue: 0,0:42:21.65,0:42:26.67,Default,,0000,0000,0000,,we can prevent the banks from ever causing\Nanother financial crisis and we can also make
Dialogue: 0,0:42:26.67,0:42:33.29,Default,,0000,0000,0000,,the current public service cuts and the tax\Nrises and the increase in national debt unnecessary.
Dialogue: 0,0:42:33.29,0:42:38.04,Default,,0000,0000,0000,,NARRATOR: The current monetary system allows\Nthe banking sector to extract wealth from
Dialogue: 0,0:42:38.04,0:42:43.70,Default,,0000,0000,0000,,the economy, whilst providing nothing productive\Nin return.
Dialogue: 0,0:42:43.70,0:42:50.63,Default,,0000,0000,0000,,Why is it that we've got all this technology,\Nall this new efficiency and yet it now requires
Dialogue: 0,0:42:50.63,0:42:56.93,Default,,0000,0000,0000,,two people to finance a household whereas\Nin the 50's it only needed one person working
Dialogue: 0,0:42:56.93,0:43:02.25,Default,,0000,0000,0000,,and the reason for that is not because these\Nwashing machines and everything are more expensive,
Dialogue: 0,0:43:02.25,0:43:06.99,Default,,0000,0000,0000,,it's because of all the debt and because it's\Neffectively the banking sector is creaming
Dialogue: 0,0:43:06.99,0:43:13.32,Default,,0000,0000,0000,,it off from everybody else. So a growing banking\Nsector is not a good thing. If the banking
Dialogue: 0,0:43:13.32,0:43:17.80,Default,,0000,0000,0000,,sector is growing, it's either that it's becoming\Nless efficient or it's becoming a parasite
Dialogue: 0,0:43:17.80,0:43:24.77,Default,,0000,0000,0000,,on the rest of the economy. We can talk about\Nthe banking sector becoming 4%, 5%, 6% of
Dialogue: 0,0:43:24.77,0:43:30.54,Default,,0000,0000,0000,,GDP, what's happening to the rest of the economy?\NIt's becoming 96, 95, 94% of GDP. We've got
Dialogue: 0,0:43:30.54,0:43:36.27,Default,,0000,0000,0000,,to get switched on to this now. If we want\Nto have a chance of tackling any of the other
Dialogue: 0,0:43:36.27,0:43:38.94,Default,,0000,0000,0000,,big social issues, you got to figure out the\Nmoney issue.
Dialogue: 0,0:43:38.94,0:43:46.56,Default,,0000,0000,0000,,The poorest in the world pay for crises even\Nwhen they've not benefitted from the often
Dialogue: 0,0:43:46.56,0:43:52.07,Default,,0000,0000,0000,,reckless and speculative booms, like the housing\Nboom in Ireland that preceeded that crisis.
Dialogue: 0,0:43:52.07,0:43:58.13,Default,,0000,0000,0000,,You know over the last 30 years, we've seen\Nincome differentials increase so that the
Dialogue: 0,0:43:58.13,0:44:02.42,Default,,0000,0000,0000,,rich have got much, much richer and ordinary\Npeople haven't, they've stayed the same or
Dialogue: 0,0:44:02.42,0:44:07.65,Default,,0000,0000,0000,,they've got poorer and one of the ways that\Nthe economy was kept going was by providing
Dialogue: 0,0:44:07.65,0:44:12.09,Default,,0000,0000,0000,,cheap credit, was by providing debt to those\Nvery people who couldn't really afford things
Dialogue: 0,0:44:12.09,0:44:18.72,Default,,0000,0000,0000,,anymore, so they kept buying and when it collapses\Nit's those same people that have to pay once
Dialogue: 0,0:44:18.72,0:44:22.87,Default,,0000,0000,0000,,again even though in many ways there were\Nthe victims the first time.
Dialogue: 0,0:44:22.87,0:44:28.68,Default,,0000,0000,0000,,NARRATOR: As a result of the crisis the Bank\Nof England has bought corporate debt and repackaged
Dialogue: 0,0:44:28.68,0:44:34.52,Default,,0000,0000,0000,,it at lower rates of interest. Yet the average\Nperson is being asked to pay more than ever
Dialogue: 0,0:44:34.52,0:44:38.48,Default,,0000,0000,0000,,to borrow on overdrafts and credit cards.
Dialogue: 0,0:44:38.48,0:44:44.53,Default,,0000,0000,0000,,Debts between the very wealthy or between\Ngovernments can always be renegotiated and
Dialogue: 0,0:44:44.53,0:44:49.56,Default,,0000,0000,0000,,always have been throughout world history,\Nthere not anything set in stone. Generally
Dialogue: 0,0:44:49.56,0:44:53.56,Default,,0000,0000,0000,,speaking, when you have debts owed by the\Npoor to the rich that's suddenly, debts become
Dialogue: 0,0:44:53.56,0:44:58.43,Default,,0000,0000,0000,,a sacred obligation more important than anything\Nelse. The idea of renegotiating them becomes
Dialogue: 0,0:44:58.43,0:44:59.80,Default,,0000,0000,0000,,unthinkable.
Dialogue: 0,0:44:59.80,0:45:05.79,Default,,0000,0000,0000,,NEWSREADER: Can you pin down exactly what\Nwould keep investors happy, make them feel
Dialogue: 0,0:45:05.79,0:45:12.05,Default,,0000,0000,0000,,more confident?\NALESSIO RASTANI: That's a tough one, personally
Dialogue: 0,0:45:12.05,0:45:16.03,Default,,0000,0000,0000,,it doesn't matter, see I'm a trader, I don't\Nreally care about that kind of stuff.
Dialogue: 0,0:45:16.03,0:45:17.17,Default,,0000,0000,0000,,CHANTING: Pay your taxes!
Dialogue: 0,0:45:17.17,0:45:19.45,Default,,0000,0000,0000,,BANKER TO PROTESTER: "Were you born in England?"
Dialogue: 0,0:45:19.45,0:45:24.36,Default,,0000,0000,0000,,ALESSIO RASTANI: If I see an opportunity to\Nmake money, I go with that. For most traders,
Dialogue: 0,0:45:24.36,0:45:28.23,Default,,0000,0000,0000,,we don't really care that much how they're\Ngoing to fix the economy, how they're going
Dialogue: 0,0:45:28.23,0:45:34.79,Default,,0000,0000,0000,,to fix the whole situation, our job is to\Nmake money from it and personally I've been
Dialogue: 0,0:45:34.79,0:45:39.12,Default,,0000,0000,0000,,dreaming about this moment for three years.\NIf you know what to do, you can make a lot
Dialogue: 0,0:45:39.12,0:45:44.25,Default,,0000,0000,0000,,of money from this. I have a confession which\Nis, I go to bed every night I dream of another
Dialogue: 0,0:45:44.25,0:45:48.81,Default,,0000,0000,0000,,recession, I dream of another moment like\Nthis. I dream of another recession, I dream
Dialogue: 0,0:45:48.81,0:45:55.00,Default,,0000,0000,0000,,of another moment like this. You can make\Na lot of money from it.
Dialogue: 0,0:45:55.00,0:46:00.88,Default,,0000,0000,0000,,GIRL: Bruno, Virginia hurt somebody real bad,\Nyou oughtta hate her .
Dialogue: 0,0:46:00.88,0:46:02.100,Default,,0000,0000,0000,,CROWD: Incoming!
Dialogue: 0,0:46:02.100,0:46:09.71,Default,,0000,0000,0000,,The way in which you can look across Europe\Nnow and see that the new prime minister of
Dialogue: 0,0:46:09.71,0:46:14.47,Default,,0000,0000,0000,,Greece, not elected, essentially imposed,\NPapademous, former employee of Goldman Sachs,
Dialogue: 0,0:46:14.47,0:46:18.51,Default,,0000,0000,0000,,the new prime minister and finance minister\Nof Italy, Mario Monti, former employee of
Dialogue: 0,0:46:18.51,0:46:23.52,Default,,0000,0000,0000,,Goldman Sachs, the new president of the European\NCentral Bank, former employee of Goldman Sachs,
Dialogue: 0,0:46:23.52,0:46:25.95,Default,,0000,0000,0000,,you see these people popping up absolutely\Neverywhere.
Dialogue: 0,0:46:25.95,0:46:30.32,Default,,0000,0000,0000,,VOICEOVER: That's the way to change what we\Nhave, take all power and all freedoms away
Dialogue: 0,0:46:30.32,0:46:34.81,Default,,0000,0000,0000,,from the people and collect everything into\Nthe hands of one small group with absolute
Dialogue: 0,0:46:34.81,0:46:44.15,Default,,0000,0000,0000,,power. From the people, without the people,\Nagainst the people.
Dialogue: 0,0:46:44.15,0:46:47.51,Default,,0000,0000,0000,,What's been interesting out of all this I\Nsuppose is the question of democracy that's
Dialogue: 0,0:46:47.51,0:46:51.96,Default,,0000,0000,0000,,been opened up very starkly in Europe, that\Nyou have a government of bankers essentially
Dialogue: 0,0:46:51.96,0:46:56.45,Default,,0000,0000,0000,,imposed on you. Its bankers who more or less\Ngot us into this mess to put it rather crudely
Dialogue: 0,0:46:56.45,0:47:00.76,Default,,0000,0000,0000,,but that's a good first approximation to it\Nand then you say, ok, bankers are the people
Dialogue: 0,0:47:00.76,0:47:04.05,Default,,0000,0000,0000,,who therefore are going to get us out of it\Nand incidentally there going to run your country
Dialogue: 0,0:47:04.05,0:47:07.67,Default,,0000,0000,0000,,now. There's a serious question of democracy\Nthat has opened up here.
Dialogue: 0,0:47:07.67,0:47:16.52,Default,,0000,0000,0000,,By the way, the banking crisis drove more\Nthan a 100 million people back into poverty.
Dialogue: 0,0:47:16.52,0:47:23.38,Default,,0000,0000,0000,,The mortality statistics of people who go\Ninto poverty rise hugely for a whole range
Dialogue: 0,0:47:23.38,0:47:29.01,Default,,0000,0000,0000,,of reasons, so the banking crisis isn't just\Nabout becoming poorer, it was about killing
Dialogue: 0,0:47:29.01,0:47:35.09,Default,,0000,0000,0000,,people as well. And guess what? We haven't\Nreally got to the bottom of it, we never held
Dialogue: 0,0:47:35.09,0:47:39.60,Default,,0000,0000,0000,,anybody to account and we haven't done the\Nradical reforming job that we really needed
Dialogue: 0,0:47:39.60,0:47:47.13,Default,,0000,0000,0000,,to do because we mistakenly thought: if we\Ndestabilise the position any further, it'll
Dialogue: 0,0:47:47.13,0:47:53.08,Default,,0000,0000,0000,,make matters worse and guess who took the\Ndecisions, all the people who were there in
Dialogue: 0,0:47:53.08,0:47:54.52,Default,,0000,0000,0000,,the first place.
Dialogue: 0,0:47:54.52,0:48:04.05,Default,,0000,0000,0000,,"I think you ought to know, the business of\None of these businessmen is murder."
Dialogue: 0,0:48:04.05,0:48:23.00,Default,,0000,0000,0000,,"Their weapons are modern, their thinking:\Ntwo thousand years out of date."
Dialogue: 0,0:48:23.00,0:48:26.91,Default,,0000,0000,0000,,What does a progressive financial system look\Nlike? And I want to hear what some of you
Dialogue: 0,0:48:26.91,0:48:33.53,Default,,0000,0000,0000,,think. Who thinks, for example, that we should\Nban banks from creating money?
Dialogue: 0,0:48:33.53,0:48:38.56,Default,,0000,0000,0000,,Control over how money is created and what\Nit's used for is, it's a democratic issue.
Dialogue: 0,0:48:38.56,0:48:44.30,Default,,0000,0000,0000,,You currently have the banking sector, profit\Nseeking banking sector, you know, not accountable
Dialogue: 0,0:48:44.30,0:48:51.00,Default,,0000,0000,0000,,to anybody other than themselves who are creating\Nup to 200 billion pounds a year of new spending
Dialogue: 0,0:48:51.00,0:48:54.22,Default,,0000,0000,0000,,power and deciding where in the economy that\Ngoes.
Dialogue: 0,0:48:54.22,0:48:59.61,Default,,0000,0000,0000,,Monetary reformers believe that that entire\Nmoney supply should be for the benefit of
Dialogue: 0,0:48:59.61,0:49:06.07,Default,,0000,0000,0000,,the public and should never be created by\Na private organisation as debt.
Dialogue: 0,0:49:06.07,0:49:12.87,Default,,0000,0000,0000,,Democratising the money supply, what that\Nmeans is putting the power to issue and allocate
Dialogue: 0,0:49:12.87,0:49:21.49,Default,,0000,0000,0000,,money back into hands of people and taking\Nit away from private organisations, institutions
Dialogue: 0,0:49:21.49,0:49:26.49,Default,,0000,0000,0000,,that don't actually represent the people,\Nthat aren't democratically accountable to
Dialogue: 0,0:49:26.49,0:49:30.55,Default,,0000,0000,0000,,the people, the banks aren't democratically\Naccountable to the people; they're accountable
Dialogue: 0,0:49:30.55,0:49:35.89,Default,,0000,0000,0000,,to their shareholders and their shareholders\Nonly. Now they're underwritten by us, by the
Dialogue: 0,0:49:35.89,0:49:40.21,Default,,0000,0000,0000,,taxpayer but they're not accountable to us.\NThat doesn't make any sense at all. So, if
Dialogue: 0,0:49:40.21,0:49:47.74,Default,,0000,0000,0000,,you democratise the monetary system, you are\Nsubjecting it to the same kinds of discipline
Dialogue: 0,0:49:47.74,0:49:56.06,Default,,0000,0000,0000,,as the education system, as the health service\Nand other key, publicly needed services. There
Dialogue: 0,0:49:56.06,0:50:02.68,Default,,0000,0000,0000,,is no reason that money should be viewed as\Nany different. It is a fundamentally important
Dialogue: 0,0:50:02.68,0:50:09.23,Default,,0000,0000,0000,,service that everybody needs. I can't survive\Nwithout enough money, nobody can. So it cannot
Dialogue: 0,0:50:09.23,0:50:16.10,Default,,0000,0000,0000,,be controlled purely by this small elite of\Nbig banks, as it is in the UK. We do need
Dialogue: 0,0:50:16.10,0:50:17.95,Default,,0000,0000,0000,,a different system.
Dialogue: 0,0:50:17.95,0:50:23.89,Default,,0000,0000,0000,,We believe that the activity of supplying\Na nation with money should be completely separate
Dialogue: 0,0:50:23.89,0:50:26.60,Default,,0000,0000,0000,,from the activity of banking.
Dialogue: 0,0:50:26.60,0:50:33.73,Default,,0000,0000,0000,,What we need to do now is update that law\Nfrom 1844 to make the digital money [into]
Dialogue: 0,0:50:33.73,0:50:38.74,Default,,0000,0000,0000,,real money. It could be electronic money,\Nbut it needs to be classified as money.
Dialogue: 0,0:50:38.74,0:50:45.51,Default,,0000,0000,0000,,We just want banks to be like every other\Nprivate organisation, private company in the
Dialogue: 0,0:50:45.51,0:50:48.53,Default,,0000,0000,0000,,economy to be subject to market discipline.
Dialogue: 0,0:50:48.53,0:50:54.37,Default,,0000,0000,0000,,The problem is that now we're in this hybrid\Nmodel where we have no control over how they
Dialogue: 0,0:50:54.37,0:51:00.92,Default,,0000,0000,0000,,spend the money, but also we're reliant on\Nthem to create our money.
Dialogue: 0,0:51:00.92,0:51:05.19,Default,,0000,0000,0000,,We're all constantly in debt, we'll be in\Ndebt pretty much for the rest of our lives
Dialogue: 0,0:51:05.19,0:51:10.27,Default,,0000,0000,0000,,and the younger generations have it even worse\Nthan the older generations.
Dialogue: 0,0:51:10.27,0:51:14.28,Default,,0000,0000,0000,,I've just been reading a report from the United\NNations environment programme and they say
Dialogue: 0,0:51:14.28,0:51:22.90,Default,,0000,0000,0000,,we need US$2 trillion a year. Two trillion\N- can you imagine what two trillion is? It's
Dialogue: 0,0:51:22.90,0:51:28.75,Default,,0000,0000,0000,,a lot of money. $2 trillion a year to finance\Nthe greening of the economy, to move away
Dialogue: 0,0:51:28.75,0:51:33.89,Default,,0000,0000,0000,,from poisonous carbon which is poisoning the\Natmosphere to alternatives to carbon.
Dialogue: 0,0:51:33.89,0:51:42.28,Default,,0000,0000,0000,,When the banks collapsed in 2007-9, we found\Naccording to the Bank of England, not me,
Dialogue: 0,0:51:42.28,0:51:48.65,Default,,0000,0000,0000,,the Bank of England tells me that we raised\N14 trillion dollars in a year to bail out
Dialogue: 0,0:51:48.65,0:51:52.67,Default,,0000,0000,0000,,the banks so against that 2 trillion dollars\Na year to bail out the ecosystem is no big
Dialogue: 0,0:51:52.67,0:51:53.00,Default,,0000,0000,0000,,deal.
Dialogue: 0,0:51:53.00,0:51:58.96,Default,,0000,0000,0000,,This kind of model doesn't make any sense\Neither from an orthodox free market perspective
Dialogue: 0,0:51:58.96,0:52:04.67,Default,,0000,0000,0000,,because these banks are monopolists effectively\Nthey monopolise credit creation so they don't
Dialogue: 0,0:52:04.67,0:52:10.17,Default,,0000,0000,0000,,obey the rules of any free market discipline.\NYet at the same time, they are not producing
Dialogue: 0,0:52:10.17,0:52:18.57,Default,,0000,0000,0000,,socially or environmentally beneficial outcomes\Nalong any real scale.
Dialogue: 0,0:52:18.57,0:52:24.78,Default,,0000,0000,0000,,All that money does is to enable us to do\Nwhat we can do and once we get our heads around
Dialogue: 0,0:52:24.78,0:52:30.31,Default,,0000,0000,0000,,that we can make money work for what we need.
Dialogue: 0,0:52:30.31,0:52:37.84,Default,,0000,0000,0000,,The power to create money is so powerful;\Nyou got to be very concerned about who has
Dialogue: 0,0:52:37.84,0:52:42.76,Default,,0000,0000,0000,,that power. If it's somebody who's going to\Nbenefit from creating the money, then they're
Dialogue: 0,0:52:42.76,0:52:46.63,Default,,0000,0000,0000,,going to have the incentive to create more\Nthan the economy actually needs. The same
Dialogue: 0,0:52:46.63,0:52:50.44,Default,,0000,0000,0000,,would probably happen if you give that power\Nto politicians. You know you can't trust a
Dialogue: 0,0:52:50.44,0:52:57.67,Default,,0000,0000,0000,,politician to be trying to please voters and\Nto have power over creating money at the same
Dialogue: 0,0:52:57.67,0:53:04.05,Default,,0000,0000,0000,,time. It's a real conflict of interest. The\Nonly thing you really can do is to give it
Dialogue: 0,0:53:04.05,0:53:09.97,Default,,0000,0000,0000,,to somebody who has no conflict of interest,\Nan independent, transparent, accountable body.
Dialogue: 0,0:53:09.97,0:53:15.66,Default,,0000,0000,0000,,NARRATOR: Money could be allocated according\Nto the needs and desires of the population,
Dialogue: 0,0:53:15.66,0:53:20.22,Default,,0000,0000,0000,,systems could be put in place to allow for\Ndirect democratic allocation of funds either
Dialogue: 0,0:53:20.22,0:53:26.53,Default,,0000,0000,0000,,wholly or partially. A framework and rules\Ncould be established to incorporate up to
Dialogue: 0,0:53:26.53,0:53:34.59,Default,,0000,0000,0000,,date economic theory into how much money should\Nbe created, and for what types of purposes.
Dialogue: 0,0:53:34.59,0:53:38.52,Default,,0000,0000,0000,,The Government would no longer be able to\Nget access to large sums of money to pursue
Dialogue: 0,0:53:38.52,0:53:44.01,Default,,0000,0000,0000,,armed conflict, if this was not sanctioned\Nby the populace.
Dialogue: 0,0:53:44.01,0:53:49.01,Default,,0000,0000,0000,,We would be able to see exactly what they're\Ndoing with the power to create money. We would
Dialogue: 0,0:53:49.01,0:53:54.14,Default,,0000,0000,0000,,be able to see how much they're creating and\Nwhere that money is going. And that is pretty
Dialogue: 0,0:53:54.14,0:53:58.38,Default,,0000,0000,0000,,much the only way we can get control over\Nthe power to create money and stop it being
Dialogue: 0,0:53:58.38,0:53:58.83,Default,,0000,0000,0000,,abused.
Dialogue: 0,0:53:58.83,0:54:06.64,Default,,0000,0000,0000,,The Money Reform Party was established in\N2005 just after the 2005 general election.
Dialogue: 0,0:54:06.64,0:54:13.82,Default,,0000,0000,0000,,The idea of the Money Reform Party was that\Nwe would have this basic core issue that people
Dialogue: 0,0:54:13.82,0:54:19.17,Default,,0000,0000,0000,,would agree with. They might disagree on other\Nissues, that's fair enough, there are different
Dialogue: 0,0:54:19.17,0:54:23.99,Default,,0000,0000,0000,,ways of going about it but that was the idea\Nwas to go for what you might call the lowest
Dialogue: 0,0:54:23.99,0:54:31.54,Default,,0000,0000,0000,,common denominator to attract people with\Ndisparate views. Getting elected to Parliament
Dialogue: 0,0:54:31.54,0:54:39.08,Default,,0000,0000,0000,,is not the issue, it's getting the issue of\Nmoney reform into the public domain, so people
Dialogue: 0,0:54:39.08,0:54:47.93,Default,,0000,0000,0000,,will begin to talk about it.
Dialogue: 0,0:54:47.93,0:54:52.26,Default,,0000,0000,0000,,Banks should not be able to gamble with your\Nmoney without your permission, so what they
Dialogue: 0,0:54:52.26,0:54:58.49,Default,,0000,0000,0000,,would need to do is to offer two types of\Naccount: One is a safe, we call it a ‘transactions
Dialogue: 0,0:54:58.49,0:55:01.77,Default,,0000,0000,0000,,account'. Put your money in there, the bank\Ndoesn't lend it, they don't put it at any
Dialogue: 0,0:55:01.77,0:55:06.07,Default,,0000,0000,0000,,risk whatsoever. The other is an investment\Naccount where you put your money in for a
Dialogue: 0,0:55:06.07,0:55:11.85,Default,,0000,0000,0000,,certain period of time and then the bank takes\Nthat away and they invest it. What happens
Dialogue: 0,0:55:11.85,0:55:17.32,Default,,0000,0000,0000,,when you use these two types of account is\Nthat in the event that a bank fails, the money
Dialogue: 0,0:55:17.32,0:55:22.55,Default,,0000,0000,0000,,in the safe account is still there, it's not\Nat risk. So you just move all the safe accounts
Dialogue: 0,0:55:22.55,0:55:26.54,Default,,0000,0000,0000,,to a bank that is still healthy and then those\Npeople who put their money in the investment
Dialogue: 0,0:55:26.54,0:55:31.88,Default,,0000,0000,0000,,account, they don't lose everything but they\Nhave to wait for the standard liquidation
Dialogue: 0,0:55:31.88,0:55:38.09,Default,,0000,0000,0000,,procedures to find out how much of the assets\Nof the banks will be returned to them and
Dialogue: 0,0:55:38.09,0:55:41.75,Default,,0000,0000,0000,,it means that the government then never needs\Nto bail out a bank. Banks can be allowed to
Dialogue: 0,0:55:41.75,0:55:43.05,Default,,0000,0000,0000,,fail.
Dialogue: 0,0:55:43.05,0:55:46.22,Default,,0000,0000,0000,,The system would actually be how people think\Nit is, that when you put your money in the
Dialogue: 0,0:55:46.22,0:55:51.33,Default,,0000,0000,0000,,bank, it's really safe or at least they used\Nto think perhaps before the 2008 crisis. There's
Dialogue: 0,0:55:51.33,0:55:56.79,Default,,0000,0000,0000,,a spectrum of opportunities there that we're\Njust not exploring at the moment and that's
Dialogue: 0,0:55:56.79,0:56:01.90,Default,,0000,0000,0000,,what's upsetting me that we're not even experimenting\Nwhen we know that the system we have now is
Dialogue: 0,0:56:01.90,0:56:08.47,Default,,0000,0000,0000,,fundamentally flawed. We've just had the biggest\Ncrisis since the second world war, since the
Dialogue: 0,0:56:08.47,0:56:13.68,Default,,0000,0000,0000,,1930's really. We know we have a system where\Nthe creators of money are underwritten by
Dialogue: 0,0:56:13.68,0:56:18.31,Default,,0000,0000,0000,,us anyway. It's kind of the worst of both\Nworlds the situation we have at the moment
Dialogue: 0,0:56:18.31,0:56:22.04,Default,,0000,0000,0000,,which is why we need to start thinking of\Ngenuine alternatives.
Dialogue: 0,0:56:22.04,0:56:27.16,Default,,0000,0000,0000,,So when we're talking about what life is going\Nto be like in the post reformed system, it
Dialogue: 0,0:56:27.16,0:56:31.37,Default,,0000,0000,0000,,doesn't mean that you can't borrow, it doesn't\Nmean that you have to save up for 50 years
Dialogue: 0,0:56:31.37,0:56:35.62,Default,,0000,0000,0000,,before you can buy a house. It does mean that\Nyou might not be able to buy a house that's
Dialogue: 0,0:56:35.62,0:56:40.11,Default,,0000,0000,0000,,10 or 12 times your income but on the flip\Nside, it means that the house that you want
Dialogue: 0,0:56:40.11,0:56:45.75,Default,,0000,0000,0000,,to buy probably shouldn't cost you 10 or 12\Ntimes your income. Houses should be affordable
Dialogue: 0,0:56:45.75,0:56:50.44,Default,,0000,0000,0000,,as should everything else. You'll still be\Nable to get a mortgage; you'll still be able
Dialogue: 0,0:56:50.44,0:56:58.61,Default,,0000,0000,0000,,to get finance for a car. Businesses will\Nstill get investment. It just means that debt
Dialogue: 0,0:56:58.61,0:57:08.02,Default,,0000,0000,0000,,won't be so high, it won't be such a huge\Nfeature of people's lives.
Dialogue: 0,0:57:08.02,0:57:18.43,Default,,0000,0000,0000,,NARRATOR: The issue of monetary reform has\Nhistorically been a very sensitive issue because
Dialogue: 0,0:57:18.43,0:57:24.98,Default,,0000,0000,0000,,of the incredible power, wealth and privileges\Nit bestows. In an age where analytic thought
Dialogue: 0,0:57:24.98,0:57:30.45,Default,,0000,0000,0000,,and a scientific approach are held in such\Nhigh esteem, there is no justifiable argument
Dialogue: 0,0:57:30.45,0:57:37.29,Default,,0000,0000,0000,,for keeping the mechanics and implications\Nof the monetary process such a taboo subject.
Dialogue: 0,0:57:37.29,0:57:42.90,Default,,0000,0000,0000,,As democratic citizens we have the right to\Ndemand a monetary system, which is both stable
Dialogue: 0,0:57:42.90,0:57:45.57,Default,,0000,0000,0000,,and beneficial to society
Dialogue: 0,0:57:45.57,0:57:51.75,Default,,0000,0000,0000,,The banking lobby is very powerful. I suspect\Nthat they won't be in favour of these kinds
Dialogue: 0,0:57:51.75,0:57:57.45,Default,,0000,0000,0000,,of models although ultimately one could argue\Nthat's it's a much more stable footing for
Dialogue: 0,0:57:57.45,0:57:58.40,Default,,0000,0000,0000,,banks.
Dialogue: 0,0:57:58.40,0:58:02.37,Default,,0000,0000,0000,,There's this cosy relationship between the\Ngovernment and the banks. In the middle of
Dialogue: 0,0:58:02.37,0:58:07.98,Default,,0000,0000,0000,,the crisis, I spoke to somebody who was working\Nin the Treasury in the middle of the crisis
Dialogue: 0,0:58:07.98,0:58:12.26,Default,,0000,0000,0000,,and he said pretty much every second person\Nthat you spoke to was working for one of the
Dialogue: 0,0:58:12.26,0:58:16.66,Default,,0000,0000,0000,,big banks. So when it comes to a decision\Nabout whether you let one of these toxic banks
Dialogue: 0,0:58:16.66,0:58:24.23,Default,,0000,0000,0000,,fail or whether you rescue it, what kind of\Nrecommendation are you going to get from somebody
Dialogue: 0,0:58:24.23,0:58:25.59,Default,,0000,0000,0000,,who works in that bank.
Dialogue: 0,0:58:25.59,0:58:29.33,Default,,0000,0000,0000,,"This is the zombie banks' protected feeding\Nstation."
Dialogue: 0,0:58:29.33,0:58:35.02,Default,,0000,0000,0000,,NARRATOR: Banks balance sheets are now 4 times\NGDP at 6 trillion pounds; they are holding
Dialogue: 0,0:58:35.02,0:58:39.87,Default,,0000,0000,0000,,the public hostage. Their wealth has become\Nso great through gaming the financial system
Dialogue: 0,0:58:39.87,0:58:44.56,Default,,0000,0000,0000,,that we are at a tipping point whereby a single\Nbank could now take down the entire economy.
Dialogue: 0,0:58:44.56,0:58:52.93,Default,,0000,0000,0000,,"Eat her, eat her now, eat her, she's a public\Nsector worker, eat her, suck her blood, drink
Dialogue: 0,0:58:52.93,0:58:54.41,Default,,0000,0000,0000,,her dry!"
Dialogue: 0,0:58:54.41,0:59:01.09,Default,,0000,0000,0000,,It is a political issue, ultimately, because\Nthe reforms that are required can only be
Dialogue: 0,0:59:01.09,0:59:06.95,Default,,0000,0000,0000,,achieved by Parliament. We don't need a very\Nbig act of Parliament. All it has to do is
Dialogue: 0,0:59:06.95,0:59:14.08,Default,,0000,0000,0000,,basically prevent the clearing banks from\Ncreating currency based on the debt of their
Dialogue: 0,0:59:14.08,0:59:17.86,Default,,0000,0000,0000,,borrowers, that's it. You stop that.
Dialogue: 0,0:59:17.86,0:59:22.55,Default,,0000,0000,0000,,We can't let the banks go back to business\Nas usual because if they do, then all we're
Dialogue: 0,0:59:22.55,0:59:29.62,Default,,0000,0000,0000,,going to see is more debt, more poverty, more\Ninequality and another crisis in 5 or 10 years,
Dialogue: 0,0:59:29.62,9:59:59.99,Default,,0000,0000,0000,,which we're going to have to pay for again.