Let’s get this straight.
Most money is created by banks as debt, i.e. ‘out of thin air’.
Banks ensure they keep plenty for themselves, the grandest buildings, the biggest salaries, huge bonuses.
Eventually they always lend too much, confidence declines, some bank(s) get(s) into trouble because there is a run on the bank, because the money doesn’t really exist.
So a bank or two fails, but is usually bailed out by governments.
So governments need to borrow a bit more from… banks.
And/or they take it from the people by ‘austerity’, reduced public services or additional taxation.
And they say there was too much debt, another way of saying it was the banks wot did it.
And the most egregious banking behaviour appears to be but lightly punished – the rewards appear to greatly outweigh the risks.
You couldn’t make it up!
There must be a better system. At least someone’s proposing solutions. See eg
“There’s no magic money tree”
Tory general election campaign slogan.
Well there are lots of them, actually.
How about the ability of banks to create money out of thin air and charge interest on it, gaining profits in the process? Why do you think banks have the biggest buildings in towns and cities and reliably generate huge salaries, bonuses and profits? Central banks could take over all money creation, to the benefit of all. See discussion at
Positive Money. Read More »
You might think the Bank of England makes the money that is used to oil the wheels of the economy. You’d be wrong. The BoE creates only around 2.8% of the money in circulation. The rest is created out of thin air by commercial banks as debt. Debt is built into the system – so […]
What did you expect when you elected a PR man to be head of the UK government? Government by PR.
Meaningless slogans that are contradicted by real actions in the opposite direction, for example:
“Greenest government ever” – anti-green ministers appointed, moves investment from renewables to fossils and nuclear, green investment bank diluted.
“Compassionate conservatism” – reduces benefits to the disabled, more people sleeping rough.
“We’re all in it together” – takes from the worst off and gives to the better off, increases inequality, builds insufficient lower-priced housing.
“No top down reorganisation of the NHS” – the Lansley top down reorganisation.
“The NHS is safe in our hands” – now battling with NHS staff.
“7-day NHS” – somehow going to happen without increasing investment.
And so on…
Untrue narratives or half-truths propagated to ensure advantage in the polls. Just a couple of examples:
“Labour caused the financial crash” – it didn’t; it was bankers and virtually none were punished in any way.
“We will save £12 billion (but we won’t yet tell you how)” – now we know – it was by taking money from the weakest in society.
Real problems, such as the care crisis, lack of affordable housing, global warming, gross inequality, the inadequacy of current banking – shunted into the long grass.
That’s not to say the Cameron governments have not done some good things, but put a PR man at the top, and nothing is ever quite what it seems. Of course, he watched Blair closely, and learned…