Move Your Money Campaign Won’t Change Banking

The Left never fail to disapoint. You can’t hate them for it because many of them genuinely do care. But they so often miss the point.

And the new Move Your Money Campaign is a case in point

Why Move Your Money?

We all know that the banks have failed us and something has to change.

The banks won’t change of their own accord and politicians and regulators are too narrowly focused on maintaining the status quo, so we must be the agents of change. It is simple: make a positive decision about where to put your money.

Banks rely on the deposits of ordinary savers. So when you choose where you keep your money, you are choosing between supporting business as usual or taking a simple but powerful step towards a better banking system and a better future. By moving your money you can directly support an ethical and socially useful bank, and send a message about the sort of society and economy you want to see. And one you’d rather not.

March 2012 is ‘Move Your Money Month’. The month when we act together, move our money, and begin to change British banking for good.

On some levels this a reasonable and even logical idea — from a Left-wing perspective that is. Use market power to encourage banks to behave more ‘ethically’…

However the campaign does not deal with any of the actual problems with UK banking. They concentrate on the side show of where banks invest your ‘savings’. This seems to be because MYM misunderstand the banking crisis

The banks failed badly, but despite receiving the biggest taxpayer-funded bailout in history, nothing much has changed. Banks continue to pour money into socially useless lending and risky speculation, leaving us exposed to more crises, commodity bubbles and instabiliity.

Sadly you are not going to change an industry if you save it from its own incompetence and flaws. Nothing has changed with banking because nothing was allowed to change.

Also poor or risky investement decisions aren’t really the problem. The Fractional Reserve system is both speculative and risky by it’s nature. It’s not a sound system that badly invested all our money. It is simply, an unsound system.

You put your money in a bank and they go speculate with it. It’s not stored or saved for you. And to make things worse they use your money to justify loans and investments of 10 to 100 times the value of your deposit. Hasten the term ‘Fractional Reserve’…

Sadly MYM don’t seem to deal with this issue at all. Generally they just encourage people to shift their money from ‘bad’ speculative institutions to ‘ethical’ ones. And neither do they mention the debasement of money. Which naturally undermines wealth and encourages speculation.

My feeling is the MYM will achieve little, and certainly not the “change” they are looking for. At most they may encourage Barclays — who they really don’t like — to create a ‘Hippy’ Fund…

One Comment

  1. MYM would scare the bejeezus out of people if they just said “on such and such a day, withdraw all your balance and keep in under the mattress…”

    That sort of action has potential to cause trouble.

    But no, the idea of pontificating on what is “ethical” or not is far too attractive, it seems.



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