The way Banks work is not the way economists are taught that they work. The monetary system is broken and needs reforming to a 21st Century Standard.
The fact is that 97% of money is now digital and controlled by the private banks not the people of England. Only 3% of money is produced by the Bank of England on behalf of our government. If you were to print some you would get a prison sentence for counterfeiting, yet the banks produce money as debt every day.
Their was a debate on monetary system and the creation of money for the first time in 170 years in the House of Commons [not so commons]. The debate was caused by a pressure group called www.positivemoney.org and we need to compliment their work by campaigning for a new system. A system that does not create “debt” but positive money.
See the main video by www.positivemoney.org and the basics of the way banks work in six short videos. It is an eye opener.