Amid the seeming surprise of the Serious Fraud Office opting to prosecute Barclays Bank personnel (at last) there is one particular aspect that we should try to draw attention to.
The BBC says that Barclays may have ‘given’ the money to Qatar to buy its own shares. If Barclays had the money in the first place there would presumably be no reason to give it to anyone – they already had it!
But Barclays didn’t ‘give’ it, they created it.
What should become crystal clear in the prosecution is that Barclays could create the money only by making a loan.
Barclays didn’t have the money but they could create it as a loan for a willing party – out of thin air.
Indeed Professor Richard Werner has always maintained that this is exactly what happened.
The serious Fraud Office obviously thinks along the same lines. Let us hope the fact that it is a criminal trial does not prevent the public from learning that this system of money creation is going on all the time and creates 97% of money in the economy.
It is a fact not universally acknowledged that the Co-op Bank never has been itself a Co-op. It was a bank originally owned by the CRS as a way of providing economical banking for their own retail operations.
This was a surprise discovery made after attending a recent lecture by Tony Greenham who looks after ‘new’ banking for the RSA.
Continue reading “The Co-operative Bank is not Co-operative at all, but real Co-operative Banking is now possible in the UK”
When you listen to all the discussion about balancing the budget, about how any increase in spending needs to be matched by an increase in tax, why does no one mention that an increase in spending automatically generates extra tax?
There is no need to raise tax rates!
Continue reading “How are we going to pay for it?”
The Tax Justice’s Network ran a blog on Thursday answering the journalists’ typical question (drawing, as usual, on journalistic domestic household experience) about additional government expenditure: “How are you going to pay for it?”
Continue reading “Make mine Quantitative Easing please”
Everyone speaks of money as if the taxpayer created it and passed it across to the government, if not with outright hostility then certainly with great circumspection.
But since the financial crisis we know that we spend first and tax later. Where otherwise, did that almost half a trillion of ‘Quantitative Easing’ come from? Was it in the warehouse out the back? And if it was, how long had it been there? How many more are there and where are they?
Yet still the government and mainstream media particularly, insist on calling it taxpayers’ money. It isn’t and that’s why the notes in our pockets have written on them “I promise to pay the bearer on demand” signed not by a taxpayer or a group of them but by the Chief Cashier of the Bank of England.
Continue reading “Calling it “Taxpayers’ money” creates bureaucracy”