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NEWS RELEASE: 21st July 2005:
PUBLICLY-CREATED MONEY
- Mechanism for Making Poverty History - at Home and Abroad
Early Day Motion 390 entitled "Publicly-Created
Money" was tabled by Austin Mitchell MP on June
22nd, 2005. It urges the Treasury and Treasury Select Committee
to commission independent reviews on how to increase the
proportion of publicly-created money in the economy and
on the benefits of doing so.
Publicly-created money is created by the State free of
interest, whereas privately-created money is supplied by
banks as interest-bearing debt. The EDM draws attention
to the fact that the dwindling proportion of publicly-created
money in the money supply is among the causes for increasing
personal and corporate indebtedness and the continuously
rising gap between rich and poor.
See EDMs 2 and 3 entitled Gap between Rich and Poor
and Gap between High and Low Earners. Besides
taxation and borrowing, publicly-created money is the third
income stream for the State. But tax evasion has become
commonplace among companies which the Tax Justice Network
draws attention to.
Richard Murphy, Director of Tax Research Ltd, says:
"It is estimated that there are more than 2 million
offshore companies and more than 350,000 offshore trusts
that hold between US$3 billion and $US8 billion. This is
an evasion of the social and corporate responsibility towards
the State. The dangers of public borrowing are signalled
by the need to cancel debts in developing countries and
the enormity of the US national debt.
James Gibb Stuart, author of The Money Bomb
in 1983, predicted that the Public Sector Borrowing Requirement‚
would reach £25 billion 'just to pay the interest
on the national debt' - which is close to reality today.
In Fantopia "Invoking the Public Credit for a Balanced
Economy and Social Justice", he quotes Reginald
McKenna, the Chairman of the Midland Bank in 1924: "I
am afraid the ordinary citizen will not like to be told
that the banks can and do create money. And they who control
the credit of a nation direct the policy of Governments
and hold in the hollow of their hand the destiny of the
people." He had been Chancellor of the Exchequer in
1915-16.
Donald Martin, Chairman of the Forum for Stable
Currencies says: "I hope that more and more MPs begin
to understand the mechanisms of money creation and welcome
constructive proposals for redressing the balance between
state-created money and bank-created credit."
Lord Ahmed, the Host of the Forum for Stable Currencies,
says: "I only hope that the West wakes up to the detriment
of usury in its financial capitalism. In Islam it is a deadly
sin to take interest for money."
This EDM is the fifth of its kind during four Parliamentary
years. Taken together, these EDMs have been signed by a
total of 54 MPs.
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For further information, please contact the Organiser
of the Forum for Stable Currencies, Sabine McNeill, on
020-7328-3701 or sabine@globalnet.co.uk.
To contact your MP: see www.WRITEtoTHEM.com
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