Monday, 6 August 2012

PoliticsUK interviews Mike Horwath, creator of 97% owned(Before the documentary was finished)



Politics UK · 4,431 like this.
1 December 2011 at 19:31 · 
  • ‎****Q&A Session with 97% Owned - Democratise our Money Supply*****
    Baz. PoliticsUK Blog!: Black/Horwath
    bazpoliticsuk.blogspot.com
     ·  · 
    • Morgan John Dalton, John Anderson and 2 others like this.
      • Politics UK Could users use the above thread to ask questions.
        The Q&A start promptly at 2000hrs.
        1 December 2011 at 19:31 · 
      • Politics UK Hello to all the contributors at PoliticsUK in a few moments we will be introducing and opening the thread to Mike Horwath who is creating a documentary 97% owned.
        Thank you for agreeing to a Q&A session today Mike .
        1 December 2011 at 19:49 · 
      • Mike Horwath Hi, thanks for having me on and looking forward to it.
        1 December 2011 at 19:55 ·  · 3
      • Politics UK Right lets start with the first questions:
        1 December 2011 at 19:57 · 
      • Politics UK ‎1.
        What is the role of monetary policy in the current crisis? what do you believe are its limitations?

        2.
        Do you believe that more of the financial sector should be nationalised, if so which bits?
        1 December 2011 at 20:00 · 
      • Mike Horwath Some tough questions from the off and I hope everyone can understand that to answer properly would require more than a Q&A so I will do my best to give quick overviews and point people towards some interesting ideas that we learnt in making the film.
        1 December 2011 at 20:02 ·  · 2
      • Mike Horwath Monetary policy is one way the Bank of England seeks to control the supply of money within the UK. The first limitation I would suggest is the idea that the Bank of England can control the money supply, as the title of the documentary says 97% of the money supply is actually created as a form of bank credit by the banks and not by the Bank of England. Without getting to technical the BoE have obviously not been able to control this creation and we have seen the recent financial collapse.
        1 December 2011 at 20:03 ·  · 2
      • Politics UK Our contributors do make some good questions :P
        1 December 2011 at 20:04 · 
      • Mike Horwath Second to that they have completely failed to control the inflation levels, taking the neo classical view if you looked at the level of money creation in the last 10years inflation is running at 7% or slightly more, or we are doubling the amount of money in the system every decade. This is a stealth tax on the population. In a recent experiment people were asked if they would prefer a 5% pay raise and 6% inflation or a 2% pay raise and 1% inflation they chose the 5% pay raise, so inflation is not well understood.
        1 December 2011 at 20:05 ·  · 2
      • Mike Horwath Finally I would say they can influence the market by creating bubbles, such as the housing bubble in effect to get themselves out of a popping internet bubble by slashing interest rates for housing.
        1 December 2011 at 20:06 ·  · 1
      • Mike Horwath Currently however the MPC are using Quantitative Easing for MPC and low interest rates, I would suggest we are in a liquidity trap.
        1 December 2011 at 20:07 ·  · 1
      • Mike Horwath Number 2, short answer no. That would scare me, but to suggest another approach
        1 December 2011 at 20:07 ·  · 1
      • Mike Horwath Local banking at the council level could be something the government could encourage or fund.
        1 December 2011 at 20:08 ·  · 1
      • Politics UK Thankyou for those answers. Here are the next two questions:

        You mention concerns about ex bank employess on the MPC, do you consider them unqualified? Do you consider them to have more loyalty to the companies they left than to the institution they joined?

        If the appointment of "head bankers" was to be more democratic what would be the minimum level of knowledge required for the role and who would judge that?
        1 December 2011 at 20:08 · 
      • Mike Horwath The issue as I see is the Economics profession itself is corrupt. I remember a film with Rodney Dangerfield where I think he was at Harvard studying Economics and he drove the tutor mad with his real world scenarios in contrast to the theory lead economist which in many cases is based on the concept of perfect information and rational behavior, the market has neither.
        1 December 2011 at 20:11 ·  · 1
      • Mike Horwath So when you study economics they do not teach how money is created, its only glanced over in the money multiplier theory. The problem with the bankers taking over is its the same dogma, same theory and this is the root of the problem.
        1 December 2011 at 20:12 ·  · 1
      • Mike Horwath Appointing head bankers,
        1 December 2011 at 20:13 · 
      • Mike Horwath Similar to as I mentioned above I think we need a new way of thinking about the money system and that drive need to come from the political arena, I'm just not sure it will happen. So of course they are all highly qualified but in what? In any other profession if you failed as regularly as these guys your would be out on your ear.
        1 December 2011 at 20:14 ·  · 2
      • Politics UK Brilliant, thank you for the answers. Here are the next two contributor questions:

        5
        Is the eurozone inflation target too low?

        6
        Where there are different "ideal interest rates in different parts of an economy, as in the eurozone, which should take precidence?
        1 December 2011 at 20:16 · 
      • Mike Horwath We looked very closely at inflation during the making of the film and I had to step away from it as it drove me mad !! LOL
        1 December 2011 at 20:17 ·  · 2
      • Mike Horwath The thing is like all the structures they put in place they constantly change to reflect the best political outcome, so recently the RPI vs CPI argument rose in regards to the Pensions. I would suggest any inflation is bad, its a stealth tax eating away at your savings, your salary and the value of your currency.
        1 December 2011 at 20:18 ·  · 1
      • Politics UK Next two questions:
        7
        Is the current parliament sufficiently knowledgable about finance to oversee and legislate a modern economy?

        8
        Do you believe that this government or any government will find itself able to fully enact changes to regulation, transparency etc in this manner in the near future
        1 December 2011 at 20:21 · 
      • Mike Horwath Interest rates is a strange and very complicated tool for MP and to complicated to go into in this Q&A, nor am I sure I would have the best knowledge, but from what I learnt in making the film I'm not a fan at all and would suggest we looked at alternative ways to create money, and lend money that moved away from this type of policy.
        1 December 2011 at 20:21 ·  · 2
      • Mike Horwath I attend a conference organized by Positive Money recently in which Steve Keen, MP, was discussing this and he suggested only 4 people in Parliament really understood how money is created. As surprised as I was to hear him say it I was not surprised at the actual content of what he said.
        1 December 2011 at 20:24 ·  · 1
      • Mike Horwath 
        What is surprising at the same time is the amount of influence banking has on the government, Cameron's family are a banking family, traders at Panmure, Nick Clegg's Dad a Banker. So thats the Prime Minister and Deputy Prime Minister from b
        anking families. Also interesting was 23 of 28 in Cabinet were Millionaires and 50% of Tory party funding came from the City, I just don't think there is the will or desire to go ahead and make changes.
        1 December 2011 at 20:27 ·  · 2
      • Mike Horwath Yet.....
        1 December 2011 at 20:28 ·  · 2
      • Politics UK and to complete our first 10 questions of the night :)
        9
        Did any of the people you interviewed for the film have a clear alternative to the existing banking system ?

        10
        Do you think the mainstream press have been able to invalidate what the occupy movement stands for?
        1 December 2011 at 20:30 · 
      • Mike Horwath In answer to No 8 I don't believe we will see any change from the top down, we need to force the change from the Bottom up, watch the film, gain education from the likes of NEF, I cant recommend "Were does Money come from" enough, a totally fascinating read and get involved with movements such as positive money or similar, we have to force a change to a modern economic society. The options are already out there.
        1 December 2011 at 20:30 ·  · 2
      • Mike Horwath 
        Yes, I've mentioned already Positive Money (http://www.positivemoney.org.uk/) have a look at those guys who have been really helpful in the making of the film, did lots of research for us. The New Economics Foundation again look those guys 
        up. Then there is complementary currencies for which we interviewed a researcher who was looking at ways of expanding the growth of this technology, to more main stream alternatives such as a BitCoin, more entrepreneurial approaches such as Simon Dixon and the Bank to the Future scheme.
        « Positive Money
        www.positivemoney.org.uk
        Ever wondered why we're all in so much debt? Watch this three minute video to discover what we need to do to end the debt crisis...
        1 December 2011 at 20:35 ·  · 2 · 
      • Mike Horwath There are many alternatives, what I believe is we should pick up pieces of each. But I should also shout out to Mises and the Cobdan Centre as other places to look for alternatives
        1 December 2011 at 20:36 ·  · 1
      • Mike Horwath The main stream press.....we love to hate them at the moment but sit on the tube and everyone has a paper.
        1 December 2011 at 20:36 ·  · 1
      • Mike Horwath I think they have an agenda in protecting the status quo.
        1 December 2011 at 20:36 ·  · 1
      • Mike Horwath The OWS movement can live on the internet no problem.
        1 December 2011 at 20:37 ·  · 1
      • Mike Horwath I did want to sneak in this link about OWS by the way which I thought was great...http://www.aljazeera.com/indepth/opinion/2011/11/2011112872835904508.html
        Occupy Wall Street's anarchist roots
        www.aljazeera.com
        The 'Occupy' movement is one of several in American history to be based on anarchist principles.
        1 December 2011 at 20:41 ·  · 2 · 
      • Politics UK Excellent and thank you at this stage. We will take a 2 minute break here and then I will post a few additional questions
        1 December 2011 at 20:43 · 
      • Politics UK Hi all, Back for the final run.
        We have around 10 further questions to put before Mike to get his thoughts and responses. Please feel free to ask further questions on the thread above.
        1 December 2011 at 20:52 · 
      • Politics UK Mike hope your ready. Here we go:
        a
        Do you agree with the MPC and its stance of low interest rates despite 5% inflation?

        b
        To what extent should monetary policy be coordinated with fiscal policy, would this be a threat to the independance of the bank of england?
        1 December 2011 at 20:52 · 
      • Mike Horwath Thanks for the quick break....heavy stuff !
        1 December 2011 at 20:53 ·  · 2
      • Mike Horwath I think I would like to answer both these questions in one go.
        1 December 2011 at 20:53 ·  · 1
      • Politics UK As you feel its best! :p
        1 December 2011 at 20:54 · 
      • Mike Horwath 
        I believe it was Henry Ford who said he did want to ask his customers what they wanted as they would say faster horses. I think this is the situation we are in now, were not looking at the future solutions were trying to band aid a complete
         broken and corrupt system, that was to quote again, "Banking was conceived in iniquity and was born in sin." and that was a former President of the Bank of England. The recent governor of the Bank of England has stated "Of all the many ways of organising banking, the worst is the one we have today" scrap it and start again.
        1 December 2011 at 20:57 ·  · 1
      • Mike Horwath So what I'm saying is both the questions refer to band aids
        1 December 2011 at 20:58 ·  · 2
      • Mike Horwath or problems created by other problems....and on
        1 December 2011 at 20:59 ·  · 1
      • Mike Horwath excuse my spelling ... and some grammar errors there.
        1 December 2011 at 21:00 ·  · 1
      • Politics UK Nice answer. . .
        The next two put to us are:
        c
        Do you think that the $ as a prefered reserve currency should be maintained - Would special drawing rights be better?

        d
        A lot of wealth in the UK is tied up in houses and a lot of debt is still in mortgages - should the government take steps (such as its proposed guarantee on new mortgages) to drive up house prices? If so is there a risk that this will cause problems if there is an asset that will never be allowed to fall in value?
        1 December 2011 at 21:01 · 
      • Mike Horwath The SDR is an interesting question
        1 December 2011 at 21:02 ·  · 1
      • Mike Horwath If we have any conspiracy folk on here they'll love that question.
        1 December 2011 at 21:02 ·  · 2
      • Mike Horwath It is an obvious solution to move to some sort of global currency, in fact many would argue all of what is happening is a deliberate attempt to push towards such a goal. Its both elegant and scary at the same time.
        1 December 2011 at 21:03 ·  · 1
      • Mike Horwath We interviewed James Meadway and asked that exact question so it will be interesting to see if that makes it through the cutting process, so watch the film for that answer
        1 December 2011 at 21:05 ·  · 2
      • Mike Horwath The government propping up the housing market....driving up prices...cant shake my head enough at that one.
        1 December 2011 at 21:05 ·  · 1
      • Mike Horwath Again watch the film for some direct conversation about that topic but I would say were robbing our children of their wealth by pushing up house prices.
        1 December 2011 at 21:06 ·  · 1
      • Politics UK Now that sounds interesting!! and cryptic :p
        1 December 2011 at 21:06 ·  · 1
      • Mike Horwath The housing market should never have been used for asset uplifting it was political and gives no benefits, its investment in unproductive markets.
        1 December 2011 at 21:07 ·  · 2
      • Politics UK e
        What would you advocate policy wise and with respect to regulation of money supply to avoid asset bubbles in future? What are the anticipated impacts of your suggestions on the ability of governments and the financial system in general to control the formation and dissipation of bubbles?
        1 December 2011 at 21:07 · 
      • Mike Horwath I would point your audience to the Positive Money website and also to their submission to the Independent Commission on Banking as a starting point to get an informed opinion on that answer from people that know their stuff...from a personal point of view
        1 December 2011 at 21:10 ·  · 2
      • Mike Horwath 
        I believe Basel II & Basel III are actually making the situation worse. They arose from the need to regulate and control a bank collapse but in an integrated financial world as now, one bank takes another bank and so on, so in fact by incre
        asing the requirement for capital assets when a bank does fail its likely to be falling alongside others, its going to have a bucket load of assets it can't shift and the Governments will be in for more money, or rather the tax payer. Again unintended consequences which if you flag know you don't understand but after the fact.....well we saw that all very recently.
        1 December 2011 at 21:13 ·  · 1
      • Politics UK I will check Positive Money going forward. Sounds like a good data source.

        Right that was all our original submitted contributor questions. I will now move to the questions submitted today.

        Thank you Mike for sticking with us this far
        1 December 2011 at 21:13 · 
      • Mike Horwath Been a pleasure to ramble on
        1 December 2011 at 21:15 ·  · 1
      • Politics UK SUBMITTED BY @Adam smith:
        When is the documentary finished and where can we see it?
        1 December 2011 at 21:15 · 
      • Mike Horwath Now that's the hardest question yet....
        1 December 2011 at 21:16 ·  · 2
      • Mike Horwath Were hoping for March 2012...Its been delayed but were confident on this date now.
        1 December 2011 at 21:16 ·  · 1
      • Mike Horwath Adam Smith, now I'm worried
        1 December 2011 at 21:17 ·  · 1
      • Politics UK Do you know where or how it can be viewed?
        1 December 2011 at 21:17 · 
      • Politics UK http://epetitions.direct.gov.uk/petitions/23363

        Does Mike know about this epeition and does he agree that the power of credit creation should be tranferred soley to the Treasury or the Crown.
        Abolition of credit creation by private banks - e-petitions
        epetitions.direct.gov.uk
        To remove the power of credit creation from private banks and place it in the ha...See more
        1 December 2011 at 21:18 ·  · 
      • Mike Horwath Initially it should be posted to both our Youtube site: http://www.youtube.com/user/QueuePolitely and out website: http://queuepolitely.com/
        queuepolitely
        www.youtube.com
        Film & documentary production.
        1 December 2011 at 21:19 ·  · 2 · 
      • Mike Horwath Just seen the e-petition, again to reiterate I'm just a film maker not a politician so I think any awareness we can create, through any means, that Banks create 97% of our money supply is great. Even better if all these folk can get together agree on something and then challenge the status quo. Excellent
        1 December 2011 at 21:21 ·  · 2
      • Politics UK ‎(That is answer to - where can it be viewed)
        1 December 2011 at 21:22 · 
      • Mike Horwath Issued Debt free is the key
        1 December 2011 at 21:22 ·  · 2
      • Politics UK AND FINALLY:
        And what happens to our savings if the money system is changed?
        1 December 2011 at 21:25 · 
      • Mike Horwath 
        I would hope that any change would be a change for the better, in that the money system no longer serves the purpose of benefiting a few but serves the many. I believe that our savings can once again be used to benefit our communities, impr
        ove our local economies and bring back an entrepreneurial spirit to the country and that can come from liberating our savings from the massive banks in the city that suck the wealth into a concentrated sector of society. I also believe we can start to take responsibility for our savings and chose to invest it into schemes as we see fit. Then if as a society we invest in weapons that this is our choice. We need to democratise our money supply and liberate our savings. If we continue onwards your savings are being whittled away every day.
        1 December 2011 at 21:30 ·  · 1
      • Mike Horwath Thanks very much for having me on, and I hope everyone enjoys the film !!
        1 December 2011 at 21:30 ·  · 1
      • Politics UK That was a fantastic set of answers you have given. Really appreciate the time you have given us today.
        The documentary sounds very interesting and I urge all our readers to spend time to watch and understand its subject matter when it is ready.

        This thread is now OPEN TO ALL.
        Thank you for all you answers and we wish you all the best!
        1 December 2011 at 21:32 · 
      • Mike Horwath p.s. One last pug, please subscribe to the Youtube channel so we can stay in touch with those of you interested or join the facebook site http://www.facebook.com/97percentowned or @queuepolitely on twitter
        97% Owned - Democratise our Money Supply
        How is money created, where does it come from, who benefits and what purpose doe...See more
        Page: 476 like this.
        1 December 2011 at 21:34 ·  · 4 · 
      • Politics UK ‎....The Q&A is now finished. PoliticsUK would like to thank Mike Horwath and wish him success with97% Owned - Democratise our Money Supply.
        1 December 2011 at 21:45 ·  · 2
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