LETTERS TO THE EDITOR: 30/01/18 Money Creation Through Fractional Reserve Banking.

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3 Responses

  1. Barrie says:

    A very accurate statement of the current financial dilemma facing future of generations.

  2. MIKE MAUNDER says:

    It is so worrying that if enough people vote for the Labour Party, we could see them doing the same as they did before. Breaking the Nation’s financial balance with more and more borrowing, will hit their supporters the hardest and quickest but then, bless em all, I don’t suppose Labour supporters give much thought to that, and yet it was only eight years ago that we all found out just how lacking they were !

  3. Geoffrey Bastin says:

    I recall many years ago when Harold Wilson was first Prime Minister and there was a building boom. Had Fractional Reserve rules not been introduced we could have found ourselves in a difficult position. Just imagine if you had say £1000 in your bank account and when asking for some cash you were told that all the money had been leant to builders so unfortunately there wasn’t anything left for you although of course you were still in credit.
    That is the sort of situation that would have arisen years ago when the government of the day wanted to spend money it did not have and couldn’t borrow at favourable rates.
    It is the clearest sign of public sector mismanagement of the economy or as Enoch Powell described it as “the illegal acts of government” or that Milton Freeman said that “government is the problem”.
    I suppose to take us up to date we have to look no further that PFI that has saddled the public sector with huge debts that will take at least another generation to repay all in an attempt to hide the truth about large scale borrowing and it’s affect on the overall economy.
    If any of us as individuals behaved as present and previous governments have we would have been either refused further credit or rendered bankrupt long before we reached this situation.
    We have mortgaged future generations and laid the foundations of economic chaos but whatever we say as individuals we seem powerless to influence what is being done in our name as we watch the national debt grow to unbelievable proportions and even reducing the deficit is yet again delayed for a few more years.
    A couple of years ago a group of MPs decided to discuss money supply/creation and only a few could be bothered to attend. From the hansard records it shows that not many understand the subject or even thought it worth discussing. A channel 4 reporter even asked members entering and leaving the Commons what they thought the national debt stood at and hardly anyone got the right answer. Even one MP said it was not for him to say and that that was a question for the Treasury. !!!

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