Monday, 3 October 2011


With the imminent financial catastrophe which threatens to engulf not only the EU and possibly the world, a sense of panic seems to have set in among world finance leaders.

Of course the impending disaster is brushed over at the Tory Party conference where they expect Osborne to pull a few rabbits out of the hat.
Actually he resembles the rabbit and will be about as much use.
Tory policies of giving our money away abroad while weakening our defence capability and as a side effect putting three thousand skilled engineers on the dole and letting the Bombardier train contract go to Siemens do not augar well for our future manufacturing prospects.

The degree of the international lack of confidence is shown by the increased investments in gold and the rumoured printing of Deutschmarks in readiness for a possible breakup of the Euro.

Our response is said to be the printing of money, perhaps fifty billion as a start to "kick start" the economy, effectively devaluing every pound in every British person's pocket.

The method of introducing this new "paper" into the economy is interesting.
It could be done in a way which really does help our economy and way of life, but it will not be done in a way which helps us.

The usual way this "new" money is introduced is for the banks to be allowed to create money to buy Government bonds which will make interest for the banks ON MONEY THEY NEVER HAD.
Thus the bankers bonuses will be intact and they will be credited on any stimulus created.

A better way in my opinion would be to issue the money to the Post Office or a new nationalised bank or both which could be lent out at a low rate of interest to borrowers.
All deposits in these nationalised banks could be guaranteed and interest rates higher.

Thus the national banks would out compete the leeches in the other banks with their depositers taking their money out, getting better terms than they otherwise could in the nationaliosed banks.

I believe the Post Office could be rejuvenated by such a measure, creating and saving a valuable village and local service, especially if Post Offices were removed from supermarkets, which I think they should be.

With these measures I believe a start could be made to control the bankers whose control over our money is far too powerful and return OUR money back to those who own it.

The bankers often state their belief in free enterprise and in this I agree with them but the present set up is a cartel of the obscenely rich.

A bit of real competition would do them good and if they fail, well that's business.
It would not hit the ordinary saver or businessman, just those who leech off them.

Will such a scheme or anything more just than the present system be put in place?
Not a cat in Hell's chance.
The major parties will not want to upset their sponsors.

These are a few of my ideas "off the top of my head"

Is there a flaw? If so please let me know.

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