I am making progress in understanding how banks work and I am working to create a healthier system.
The key problem is – who creates our nation’s money. ie in whose ownership our nation’s money is created.
The answer is that it is created in the ownership of the banks who create money by issuing loans. They then own that money (even though they have just created it out of nothing) and they use it to inflate house prices and put very little of it into productive industry. This leaves banks strong and governments weak. I think the Bank of England should be the sole creator of money in the UK and that it should give it to the government to spend on things that help us run a lively export economy.
The fact that commercial banks create money doesn’t seem to be seriously contested except at first. Once you nail them down, the people who know agree that banks create money.
I have now met the chief officers of four of our five best known banks. Further to that I’ve met the chief economists of two of them and had correspondence with others.
I am working to establish links in the City. But I’m also working to develop links with leading politicians with responsibility for Treasury affairs both in government and opposition and with the MPs of the Treasury Select Committee of the House of Commons. They are all over the country. 13 of them. I have rasied a petition in the street in the constituencies of five of them and a local person submitted the petition in each case.
These are the people who can change the system for the better. It matters hugely.
So we are started! I also admire the work of Positive Money and recommend that you have a look at their site.
