A group of economists, lawyers, engineers, former civil servants, university academics and business people who have realised that the root of the instability in the world economy, and huge burden of debt in every country, is due to the fundamental design of the banking system have started a campaign for the reform of the banking system on this website here.
This is an extract from the website of the Reform of the Banking System website http://www.bankofenglandact.co.uk/
It is a reform that could prevent a future financial crisis, clear the national debt, and restart the economy.
It cures the sickness in our economy and financial system by tackling the root cause of the problem, rather than just the symptoms.
It would make the ‘inevitable’ cuts in public services completely unnecessary, reduce the tax burden by up to 30%, reduce overall levels of debt and allow us to start clearing the national debt. It takes control of the UK’s money supply out of the hands of the commercial banking sector and restores it to the state, where it can be used to benefit the economy, rather than providing a £100 billion annual subsidy to the banking sector.
Who Are We?
We’re a group of economists, lawyers, engineers, former civil servants, university academics and business people who have realised that the root of the instability in the world economy, and huge burden of debt in every country, is due to the fundamental design of the banking system.
When money is created by the state, it is added to government revenue and reduces the amount of taxes that businesses and families need to pay. However, most money now is no longer created by the state.
Instead, thanks to the rules governing banking, money is created by commercial, profit-seeking banks every time they issue a loan or mortgage. Rather than going to reduce the taxes that we have to pay, it is used to generate huge profits for the banking sector, all whilst indebting UK households and businesses and sowing the seeds of the next financial crisis.
This system effectively provides a subsidy to the banking sector of up to £100billion each year – a subsidy that, one way or another, comes out of your pocket.
Allowing commercial banks to create money also makes the economy hugely unstable. Each time a bank makes a loan, it actually creates new money to fund new loans. The more the banks lend, the more money they have available to lend, but as soon as they stop lending, the economy is starved of new money and quickly goes from growth to contraction, causing unnecessary hardship to millions of people .
READ MORE AT THE BANKING SYSTEM REORM CAMPAIGN WEBSITE HERE