Ann Pettifor on Why the 100% Reserve Solution Is a Bad Idea

Ann Pettifor has written an excellent rebuttal to the full reserve banking solution proposed by Professor Richard Wolf and Positive Money, who are in most ways her allies. Her entree is the Bank of England’s recent acknowledgment that banks create the money they lend. She writes:  

Because I am a vocal critic of the private finance sector, many assume that I would agree with Wolf and Positive Money on nationalising money creation. Not so. I have no objection to the nationalisation of banks. But nationalising banks is a different proposition from nationalising (and centralising) money creation in the hands of a small ‘independent committee’.

The full article is here:

Out of thin air — Why banks must be allowed to create money

Yves Smith has also commented, here:

Why Banks Must Be Allowed to Create Money