Friday, March 06, 2009

George Osborne, Monetary Reformer? Or not.

George Osborne, the Tory Shadow Chancellor, has made a very interesting statement about debt.
"We need a new model of growth. We need to change from an economy built on debt to an economy powered by savings and real returns on effort".

Does he not realise that 97% of all the new money that flows into the UK economy is created by banks creating debt?
If he does not, this is evidence of massive ignorance about the fundamentals of the grey financial system.
If, on the other hand, he does, this is an exciting departure of the Conservative Party from the debt-interest system of money creation, and commits his party to Monetary Reform, with the Bank of England taking over responsibility for issue of new money. Conservatives in the Green Party have fought long and hard against green Monetary Reformers over the last 12 months. Now the real Conservatives seem to be joining the reformers.

Unless George is just in a bit of a muddle. Which is more likely.

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