Credit Crisis? Cash Crumble is the Reality!

SlideShare is a neat site where you can publish your PowerPoint presentations. Recently, they ran a competition to explain the credit crisis in 30 slides.

I put 12 slides together – after the deadline though – mainly to learn how to connect SlideShare with LinkedIn – the social networking site for professionals.

Prof. Prem Sikka has signed the Petition

Prof. Prem Sikka is the most outspoken voice I’ve come across in the UK. Just reading the titles of his Guardian articles is a delight! And yesterday he signed our on-line petition as No. 30.

Austin Mitchell MP has promised to take the petition further and we’re aiming at 100 names before asking him to do so.

Meanwhile, let the magic of net- and web-working prevail!

New EDM: Taxing the Profits of Credit Creation

In the spirit of Thomas Attwood and after receiving the Attwood Award, Austin Mitchell MP was so re-inspired that he tabled Early Day Motion No. 1449 on April 29th. Since an EDM may only consist of one phrase, it is hard to read. For Austin put a lot into it: all the reasons why credit creation should be taxed – which is a new and interesting angle in this credit crisis which should really be called “cash crumble”:

That this House considers that

in the light of the nationalisation of one failing buiding society, the help given to markets by the Bank of England’s boost to interbank liquidity and the huge benefit given to the financial sector by the Bank’s proposal to take on up to £50 billion of unsaleable special purpose vehicles of bundled debt to help the banks, building societies and lending institutions escape the consequences of their own follies is disproportionate,

and should be now balanced by ensuring that the financial institutions which have benefited so substantially from the effective privatisation of the great bulk of credit creation by their power to create money via credit cards, bank accounts, mortgages, loans, special purpose vehicles and other financial instruments

thus ensuring that the seigniorage on money creation which once came to the people on public credit created by the minting and printing of money, now goes into bank profits are taxed on the credit they create

to compensate the taxpayer for the fact that the 97 per cent. of credit creation arrogated by the private sector to use and abuse for its own profit and purposes, rather than the benefit of the public, has been so badly misused and has led to yet another financial crisis of the type financial flesh is all too frequently heir to.

Anybody wanting to contact MPs to sign this proposal could use WriteToThem.