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.