Preventing another crisis via Banking reform - forget Vickers, new Nef publication goes back to basics

The New Economics Foundation has published its eagerly awaited guide to UK monetary and banking reform: ''Where does money come from?' Explaining how money is 'created' and tackling the failings of the modern monetary system at a fundamental level.

Quite simply, the old monetary system is not compatible with the new world. This ongoing crisis may have been triggered by a US housing bubble, spread by an under-regulated and incorrectly incentivised international banking system and dragged on by a lack of cooperation over sovereign debt, but the underlying root cause was a money bubble - a bubble of the economy itself. Something that can quite readily occur under the current system of pro-cyclical money(credit) creation. Time to go back to the fundamentals, good stuff from the nef. Lets hope this analysis gets the attention it deserves:

http://www.neweconomics.org/publications/where-does-money-come-from