The worst financial crisis since the 1930’s “If not ever” says Mervyn King, the Governor of the Bank of England, according to The Telegraph, Monday 10th October.
What he did not say was WHY?
WHY are we in such a financial mess?
Throughout Britain the call goes out for economic growth. Economic growth to take us out of recession. Economic growth for the jobs we need, and how do we get that economic growth? Simple, the banks must start lending more, we must go ever deeper into debt.
That same debt which caused this financial crisis in the first place.
I am reminded of that old song ’16 Tons’.
You load 16 tons and whaddaya get?
another day older and deeper in debt
Saint Peter don’tcha call me ‘Cause-
I can’t go….I owe my soul to the Company
This cry of despair, this cry of hopelessness still rings oh so very true today.
Here we are, hopelessly in debt to the commercial banks without the means of ever getting out of debt and all our political master can say is ‘The banks must start lending more.’
What is this fixation with debt?
Money is the lubricant that oils the economic wheels. Why is it the lubricant has to be debt?
In the month of August the government was forced to borrow another £15bn, bringing the total since April to £53bn on which interest will have to be paid for years to come.
With the consent of the Chancellor of the Exchequer the Bank of England has created another £75bn through what they call ‘Quantitative Easing’. Debt by just another name.
Properly considered, properly controlled that £75bn could have been created by the Bank of England and drip fed into the government’s bank account free of debt. Money that would begin to build a permanent money base to our present constantly fluctuating debt based economy. That would be an interim solution, but definetely better than to pump billions into the banking system as there is no guarantee that part of the £75bn QE will not end up as more profitable overseas bank investments. Better than that would be a systemic reform of the money creation process as advocated by Positive Money, which would gradually replace the “debt-based” with “debt-free” money.
When will somebody cast off their blinkers and free us from this discredited monetary system which satisfies the avarice world bankers?
We desperately need that ‘eureka’ moment – will the modern day Isaac Newton please sit under a money tree ?