We now turn from the three described in the last post by Max Hastings, as being without ‘a scintilla of decency’ to another working, like Professor Bailey, for the common good.
A brief summary of James Bruges‘ thinking on monetary reform
You may find it hard to believe but that’s how money is created – out of thin air – not for the needs of the country, but for the benefit of banks.
It’s so cynical, when I first heard it I could scarcely believe my ears. However, the governor of the Bank of England has confirmed it.
Martin Wolf, chief economics commentator of the Financial Times, put it like this in 2010. “The essence of the modern banking system is the creation of money, out of nothing, by private banks’ often foolish lending.”
OK, it’s a bad system, but it’s what we have and to change it would be difficult. Or would it?
The campaign for monetary reform has set out in detail how the change would take place.
A Money Creation Committee would increase or reduce the money supply on a monthly basis to keep inflation at 2%, making sterling the most stable currency in the world.
How would it affect you and me?
- Household debt – yours and mine – stands at a staggering £1,500 billion, equivalent to ten-years’ worth of income tax revenue. It is the nation’s money, which the banks have been allowed to create out of nothing, so it belongs to the nation.
- Premiums would return to the government, which would use this revenue for welfare, schools and hospitals.
- Half of it would be distributed as a citizen’s dividend with the requirement that you must first eliminate your remaining debts.
- Household debt would drop dramatically, austerity measures would no longer be necessary and your mortgage would diminish.
Banks would, once again, provide us with a useful service and my fury would evaporate.
*The New Economics Foundation has published “Where Does Money Come From?” which is now a university textbook. James Robertson has written “Future Money”. Positive Money has an engaging website with videos and has published “Modernising Money”. The full, updated text may now be seen here: http://neweranetwork.info/reports/why-austerity-james-bruges-21-3-2013/