Banks and Money, Peas in a pod you might think. Jeremy Paxman sneered at Mr Corbyn in the Battle For No 10
“a number of your other core beliefs do make it into this manifesto
don’t think about nationalizing the Royal Mail for example or the railways or energy companies or water companies
why not banks
some of our banks are
publicly owned as it is actually
you said you have always believed that banks should be publicly owned” ?
To Consider this let’s just think about what Money Does and What Banks do?
Money and Goods Are Different
”Thus, clearly, money and goods are not the same thing but are, on the contrary,
exactly opposite things. Most confusion in economic thinking arises from failure to
recognize this fact. Goods are wealth which you have, while money is a claim on wealth which you do not have. Thus goods are an asset; money is a debt. If goods are wealth;money is not wealth, or negative wealth, or even anti-wealth. They always behave in opposite ways, just as they usually move in opposite directions. If the value of one goes up, the value of the other goes down, and in the same proportion.”
The Relationship Between Goods and Money Is Clear to Bankers
In the course of time the central fact of the developing economic system, the
relationship between goods and money, became clear, at least to bankers. Thisrelationship, the price system, depended upon five things: the supply and the demand for goods, the supply and the demand for money, and the speed of exchange between money and goods. An increase in three of these (demand for goods, supply of money, speed of circulation) would move the prices of goods up and the value of
money down. This inflation was objectionable to bankers, although desirable to producers and merchants.On the other hand, a decrease in the same three items would be deflationary and would please bankers, worry producers and merchants, and delight consumers (who obtained more goods for less money). The other factors worked in the opposite direction, so that an increase in them (supply of goods, demand for money, and slowness of circulation or exchange) would be deflationary.”
Mr Corbyn’s Answer.
The Basis of Credit:
A Standard of Postponed Payment:
We can usefully recall these words of Benjamin Franklin regarding Matters of Money as they relate to Political Economy.
The Investment Bank Labour Proposes and some minor changes to the Bank Charter Act of 1844 will
make a huge difference to rebalancing the economy, this is the Political Reality of money that Neo-Liberal Voodoo economics does not want to be known or that most politicians and commentators are ignorant of. Mr Paxman I guess is one of those who are ignorant of this, I suspect Mr Corbyn is fully aware of these Issues as is the Shadow Chancellor John O´Donnell.
Where does this subsidy come from?
PAYING FOR PROMISES, THE TRUMP CARD OF SENIORAGE.
Check out policy EC661
The Green Party believes that, as the means of exchanging goods and services, the stock of money is a vital common resource which should be managed in the public interest. Yet only 3% of our money supply currently exists in the form of notes and coins issued by the Government or the Bank of England. 97% of the money circulating in the economy takes the form of credit that is created electronically by private banks through the accounting processes they follow when they make loans. for an idea of the full extent of tax payer value of such a policy see.
From 2002 to 2009, banks increased the amount of money in the UK by £1 trillion through lending (with every new loan creating new money). Because this money was created by banks, it’s the banks that get the benefit from it (in this case, the interest received on £1 trillion of additional loans).
If the government had created this money instead of the banks, taxpayers would have been able to pay up to £1 trillion fewer taxes: approximately £33,000 for every person who pays income tax over just 7 years.