It is well known by supporters of Positive Money that the privilege of the high street banks to create debt based money results in a systematic transfer of wealth from the majority of people working in the real production economy to a small plutocratic elite at the apex of the financial sector (principally those on the boards of banks).
The same transfer of wealth occurs from small investors (investing in pension funds, insurance and ISAs, etc.) to the investment banks. This has intensified with quantitative easing and “Funding for Lending” by investment banks speculating in commodities, especially oil and food and further increasing their market intelligence and profits by investing in and stock piling physical commodities – physical oil, metals and food stocks which is strictly outside their remit. Nevertheless, if they fail in these adventures they are still regarded as banks and expect to be bailed out by the taxpayer.
This is dramatic proof that Quantitative Easing, via the banks, failed in its objective to boost the real productive economy and “Funding for Lending” has been an additional expensive failure for the house buyer with minimum down payment capital and for savers.
This perversion of intent emphasizes the benefits of the Bank of England supporting the Positive Money campaign called “New money for the real economy“