Boom Bust Season 1 Episode 94 Ann Pettifor: Private Banks Create 95% of UK Money

Ann Pettifor is a political economist and author who believes that private banks have too much control over the creation and distribution of money in the United Kingdom. In the 94th episode of Boom Bust season 1, Pettifor discusses her views with hosts Brent Jabbour and Sara Montes de Oca.

Pettifor argues that the current system, in which private banks create 95% of the UK's money supply, is inherently problematic. She believes that this system gives too much power to banks, and allows them to prioritize their own interests over those of the general public.

She contends that private banks should not have the ability to create money, and that instead the government should take on this responsibility. She argues that this would create a more stable and equitable financial system, and would enable greater investment in public services such as healthcare, education, and infrastructure.

The hosts of the show push back on Pettifor's argument, pointing out that the government has historically been quite poor at managing money, and that it is not clear that the government would be any better suited to creating and distributing money than private banks.

Pettifor responds that while the government may not be perfect, it is ultimately more accountable to the public than private banks are. She argues that public oversight of the money supply would lead to more transparency and accountability, and that this in turn would create a more stable and trustworthy financial system.

The hosts also raise concerns about the potential for inflation if the government were to take on the responsibility for creating money. Pettifor acknowledges that inflation is a risk, but argues that it can be managed through careful oversight and management of the money supply.

Overall, the episode provides a thought-provoking discussion of one of the most fundamental aspects of the UK's financial system. Pettifor's perspective challenges many of the assumptions that we hold about the role of private banks in creating money, and raises important questions about the potential benefits and drawbacks of alternative systems.