Professor Richard Werner explains how banking works

In Blog by Ian Fraser

14 March 2017

In this session with ‘Renegade Economist’ Ross Ashcroft, and Panmure Gordon market commentator David Buik, Professor Richard Werner explains how the banking system works. During the session, Prof Werner says that: “Individual banks create money. This is absolute power. We know absolute power corrupts absolutely.”

Richard Werner is chairman in international banking and director of the Centre for Banking, Finance and Sustainable Development in the Southampton Business School at the University of Southampton.

Here is an earlier presentation that Prof Werner gave to the Public Banking Forum of Ireland conference, held in Dublin in April 2016. At this, he said: “The biggest source of instability is the use money is put to. Banks are not just creating the money supply, they are also the decision makers. They decide who this money will be given to.”

I have known Richard Werner since he became one of the first contributors to Qfinance in September 2009, but I’m grateful to Chris Parks for alerting me to this video.