Dr Richard Rogers
Dr. Richard Rogers stood for banking reform in the Newark by-election on 5th June 2014. This is of importance to the whole UK.
The Christian Party supports banking reform and was happy to support Dr Rodgers' candidacy. This subject is coming to prominence because of the credit crisis and the size of Britain's national debt.
The current method of creating money creates debt at the same time. In the past, this was a relatively minor part of money creation, but with the consumer and credit boom, it got out of control so that the UK is now trillions of pounds in debt.
Many people think that banks lend money that has been deposited with them. This is only a minor part of bank lending. The government has given banks authority to create money when they give a mortgage to a house buyer, or a loan to a business. This is simply created on a computer. The bank then keeps the interest. So banks went on a lending spree and the country got into debt, including the government itself, especially when it bailed out the failing banks.
The solution at the time of the banking crisis was much the same - creation of more money electronically to add to our debt.
According to the Bank of England official website: "Quantitative easing (QE) is an unconventional form of monetary policy where a Central Bank creates new money electronically to buy financial assets, like government bonds. This process aims to directly increase private sector spending in the economy and return inflation to target."
http://www.bankofengland.co.uk/monetarypolicy/Pages/qe/default.aspx
The problem was that banks were slow to lend this new money to small businesses and some of them went under.
On 20/11/2014 the House of Commons debated for the first time since 1844 the reform of money creation http://buff.ly/1qPKPVd
This video at the Copenhagen Business School explains the basic problems
http://www.positivemoney.org/videos/presentations-by-ben-dyson-others-from-positive-money/money-works-people-planet-ben-dyson-video/
The Christian Party argues that the banks take all the profit and the tax-payer takes all the risk because governments will not allow banks to fail. Rather, the government who gave the right to create money should retain the profits, which will be used to build houses, fund our health service, improve our schools and re-build our infra-structure.
The current method of quantitative easing simply reduces the value of people's savings - it devalues the pound in your pocket to recapitalise the failing banks. There is a better way to inject money into the economy without devaluing the money already in circulation, and the government has the ability to do this.
It is time to reform our banking system. This subject has been highlighted in the Financial Times by Martin Wolfe,
Chief Economics Commentator of the Financial Times. See here: http://t.co/cyyaRhs5RM
The failure of banks to lend to businesses the money given by the Bank of England highlights that banks are self-serving. It is easier to repossess a house and recoup its value than to lend to businesses investing in new machinery, because selling a machine is much harder than selling a repossessed house. There is a better way to re-finance manufacturing in the UK than by giving money to the banks.
This is not nationalisation of commercial banks; it is simply acknowledging that the government that created the nation's money is entitled to retain some of its profits for the benefit of the nations. Instead of taxing workers to the hilt, the interest on loans can fund government spending.
This makes sense to the British taxpayer who cannot understand why yet another banking scandal hits the headlines. The Bank of England should create our nation's money in its role of serving the public, acting in the nation's best interest.
The Christian Party believes that banking is a special area of commerce, which is essential to the well being of our economy. Key to the success of the banking system is the role of central banks. In the United Kingdom that means the Bank of England.
The banking system survives on confidence, and public confidence in the commercial and investment banking sector has been severely shaken. Commercial and investment banking should be clearly separated as far as liability is concerned. The inability of the banks to adequately capitalise themselves in the good years, leading to a run on the banks in the lean years, will not be addressed easily. We believe that state-created money, administered by the Bank of England, will not only improve confidence, give ownership of the financial system to ordinary citizens, and improve accountability for money lending, but it will reduce the national debt to zero, and as assets build up, the government will be able to reduce taxes as interest on borrowing offsets the need to raise taxes.
The continuous mishandling of the nation's finances is not only scandalous, but many think that the banking sector has not learned the lessons. At this rate, spiraling costs and debts will continue in every area of service delivery with a legacy of crippling debt to our grandchildren. Until the banks become accountable and responsible, with adequate regulation, the UK will fail to prosper. The Christian Party advocates prudent national budgets with integrity.
Reference:
16 Nov 2014: http://www.dailymail.co.uk/money/news/article-2836940/MPs-accuse-bank-bosses-misleading-Parliament-traders-rigged-foreign-currency-rates.html
Click for the Christian Party manifesto on Banking.
The Christian Party supports banking reform and was happy to support Dr Rodgers' candidacy. This subject is coming to prominence because of the credit crisis and the size of Britain's national debt.
The current method of creating money creates debt at the same time. In the past, this was a relatively minor part of money creation, but with the consumer and credit boom, it got out of control so that the UK is now trillions of pounds in debt.
Many people think that banks lend money that has been deposited with them. This is only a minor part of bank lending. The government has given banks authority to create money when they give a mortgage to a house buyer, or a loan to a business. This is simply created on a computer. The bank then keeps the interest. So banks went on a lending spree and the country got into debt, including the government itself, especially when it bailed out the failing banks.
The solution at the time of the banking crisis was much the same - creation of more money electronically to add to our debt.
According to the Bank of England official website: "Quantitative easing (QE) is an unconventional form of monetary policy where a Central Bank creates new money electronically to buy financial assets, like government bonds. This process aims to directly increase private sector spending in the economy and return inflation to target."
http://www.bankofengland.co.uk/monetarypolicy/Pages/qe/default.aspx
The problem was that banks were slow to lend this new money to small businesses and some of them went under.
On 20/11/2014 the House of Commons debated for the first time since 1844 the reform of money creation http://buff.ly/1qPKPVd
This video at the Copenhagen Business School explains the basic problems
http://www.positivemoney.org/videos/presentations-by-ben-dyson-others-from-positive-money/money-works-people-planet-ben-dyson-video/
The Christian Party argues that the banks take all the profit and the tax-payer takes all the risk because governments will not allow banks to fail. Rather, the government who gave the right to create money should retain the profits, which will be used to build houses, fund our health service, improve our schools and re-build our infra-structure.
The current method of quantitative easing simply reduces the value of people's savings - it devalues the pound in your pocket to recapitalise the failing banks. There is a better way to inject money into the economy without devaluing the money already in circulation, and the government has the ability to do this.
It is time to reform our banking system. This subject has been highlighted in the Financial Times by Martin Wolfe,
Chief Economics Commentator of the Financial Times. See here: http://t.co/cyyaRhs5RM
The failure of banks to lend to businesses the money given by the Bank of England highlights that banks are self-serving. It is easier to repossess a house and recoup its value than to lend to businesses investing in new machinery, because selling a machine is much harder than selling a repossessed house. There is a better way to re-finance manufacturing in the UK than by giving money to the banks.
This is not nationalisation of commercial banks; it is simply acknowledging that the government that created the nation's money is entitled to retain some of its profits for the benefit of the nations. Instead of taxing workers to the hilt, the interest on loans can fund government spending.
This makes sense to the British taxpayer who cannot understand why yet another banking scandal hits the headlines. The Bank of England should create our nation's money in its role of serving the public, acting in the nation's best interest.
The Christian Party believes that banking is a special area of commerce, which is essential to the well being of our economy. Key to the success of the banking system is the role of central banks. In the United Kingdom that means the Bank of England.
The banking system survives on confidence, and public confidence in the commercial and investment banking sector has been severely shaken. Commercial and investment banking should be clearly separated as far as liability is concerned. The inability of the banks to adequately capitalise themselves in the good years, leading to a run on the banks in the lean years, will not be addressed easily. We believe that state-created money, administered by the Bank of England, will not only improve confidence, give ownership of the financial system to ordinary citizens, and improve accountability for money lending, but it will reduce the national debt to zero, and as assets build up, the government will be able to reduce taxes as interest on borrowing offsets the need to raise taxes.
The continuous mishandling of the nation's finances is not only scandalous, but many think that the banking sector has not learned the lessons. At this rate, spiraling costs and debts will continue in every area of service delivery with a legacy of crippling debt to our grandchildren. Until the banks become accountable and responsible, with adequate regulation, the UK will fail to prosper. The Christian Party advocates prudent national budgets with integrity.
Reference:
16 Nov 2014: http://www.dailymail.co.uk/money/news/article-2836940/MPs-accuse-bank-bosses-misleading-Parliament-traders-rigged-foreign-currency-rates.html
Click for the Christian Party manifesto on Banking.