Election 2015 . . . Making Money Respectable

A political commentator has observed that the election manifestoes are not so much about the management of this country but purely its finances. An insightful observation about the real power that is now shaping our lives. No longer is it our politicians, or the democratic process but international financiers deciding how we manage their money.

I have alluded before to how producing money is like watering a garden. Whoever controls the supply of water and manages the tap has absolute control over what grows and what dies. All of the money that is in circulation on this Planet comes from just two ‘taps’. 5% comes from governments printing their own money and 95% comes from private banks printing and lending it to governments and the rest of us!

95% of every Pound, Dollar, Euro, Peseta etc. in circulation is a bank IOU. How it works is best illustrated by our credit cards. You get your first credit card and go out and buy a bottle of wine to celebrate. You give the shop your card, which they process and your credit card account has its first debit of, say £10.

That transaction has just created £10 of ‘money’ that the bank has printed on your statement out of thin air. Yes, that’s all there is to it. No cash is taken out of their account to do this, they have simply created a ‘loan’ on a computer out of your transaction to buy the wine and on which you now have to pay them interest.

When you clear your card statement at the end of the month that money disappears and comes back again when you buy something else OR get some cash. Yes, when you take cash out of your account no money leaves the banks account, they simply print some notes, again out of thin air and lend them to you.

“Ah, wait a minute”, you are saying, “My account is in credit so it’s my money”. Sadly not! That money came from somewhere else to start with in exactly the same way as your credit card ‘cash’, as a computerised interest bearing loan. Whether you are an individual, a government or corporation, whenever you need money, 95% of it has to be borrowed from private banks who simply print it into existence and earn from it, giving a ‘promise’ that its value will be OK!

Banks are private companies and in business to make profits. They have now become so powerful, as sole guardians of the global ‘tap’, they are no longer accountable to governments and can make as many loans as they like and to whomever they choose.

The bias here and what we are now facing with this election, is that banks lend their money solely upon the profits they can generate and their confidence in who they are lending to, not the needs of Society or the economy.

Greece is a perfect example. Here, as elsewhere, the banks are holding back the money they could print to stimulate that economy because they are unsure they will get it back. The fact that it was their scurrilous moneylending and gambling that created the problem in the first place is submerged in media propaganda.

Worse, in order to maintain their control over global currencies, they must make an example of Greece to stop others from doing the responsible thing and reneging on their ‘Odious’ debt. (See earlier article: http://tinyurl.com/lus7zrb)

Returning now to our garden analogy and the emphasis upon finance in this year’s manifestoes. As the majority of money is produced by the banks it becomes clear that they have now virtually shut off the tap, using their ‘austerity measures’ to slowly steal public resources from governments obligated to them through debt.

It is here that I despair of all the political parties currently smiling and spouting any nonsense to get into power. Without exception they are ignoring the one issue that would resolve all the problems we now face, by simply taking back the right of government to print and produce its own money.

In so doing they could charge interest but unlike the banks who keep it, they could recirculate that interest back into the community as jobs, healthcare and a plethora of social services, which would see that government returned to office for decades to come.

Why? Because the electorate will have found a government who truly cares about the people. That care would be regularly demonstrated in the arguments about where the new wealth is spent, rather than where we have to cut back in order to prioritise interest payments to the banks. Money would again be our servant, rather than enslaving us as our master!

That, my friends, is making money respectable!


Until the next time


Thinking from his Book: Global Magna Carta. Returning Power to the 99% . . . If They Want It! By J T Coombes