Reinventing Banking: From Russia to Iceland to Ecuador

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


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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17 thoughts on “Reinventing Banking: From Russia to Iceland to Ecuador

    • Sojourner, there are already numerous activists around the US lobbying for bills to create public banks on the state level (the the Bank of North Dakota – which is owned by North Dakota).

      As I’m from Seattle, the group I know best is the Washington Public Bank Coalition and they plan to re-introduce a public banking bill in the 2016 legislature:

      Ellen Brown, who’s a lawyer and activist as well as a blogger and journalist, has largely spearheaded this effort. She writes about it in her book The Public Banking Solution:

      Liked by 1 person

      • Yes, I am aware of grass roots efforts. But this is the banking cartel. They are not going to just sit by and let their empire be taken away.

        And if these people are working in this legal system, they are already defeated.

        I don’t know about other places in the world, but I know that,. ultimately, the people with the wealth and power, here, control everything dealing with money and the law.

        I want this to happen, and I hope these people are successful. I just don’t see how this is going to take place in a gradual way without major conflict with the powers that be happening.


        • Well, it worked in Iceland when ordinary people were prepared to march and riot in the street until they brought the government down and got their way.

          It sure isn’t my impression that the Washington Coalition on Public Banking plans to restrict themselves to working within the legal system. I know many of the activists who started this group – I was with them in the streets when we shut the WTO ministerial conference down in 1999.

          You’re right. There will be major conflict with the powers that be. But as far as I can see, that’s the only way I know to bring about change and we sure as hell can’t continue business as usually.

          I’ve said before, I don’t know any other way to mobilize people except around specific issues and demands. And when those demands are denied, you escalate.

          Liked by 1 person

          • I hear you. Like I said, I want this to happen.

            I want conflict. But I want conflict that is going to lead to a positive. permanent change.

            And if this is the way it has to happen first, then I am in full support of it!

            And I am also ready to stand with those trying to change it, no matter the cost.

            You see, I have nothing to lose!


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