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.

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4 responses to “New EDM: Taxing the Profits of Credit Creation

  1. I wish to support the EDM and suggest that the most practical way forward would be to divert the base rate of interest from the commercial banks to the public purse via the Central Bank on all “Free money-as-credit/debt” thus levelling the playing field for finance for innovative start-ups and small business and reducing costs and taxation all round by reducing the inflation of real estate.

    An innovation such as this in the money supply is NOT a tax, more of a rectification of an inbuilt injustice.

  2. Dear Ian,
    Supporting an EDM means getting your MP to support and sign it. The easiest is to use http://www.writetothem.com/

    On this link you can see the 16 MPs who’ve signed so far: http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=35711&SESSION=891

    Good luck with yours!

    Sabine

  3. Hi
    What a great proposal. Its a clear injustice that the ability of the banks to make money out of fresh air, results in all the rest of us paying the price twofold. Firstly when we are forced to pay interest as a society on the money so created, and secondly when the money teh banks have created is leant to non-reliable borrowers, in which case the banks expect us to bail them out! Nonsense really. Banks should become utilities only. What they do is a fraud on the rest of us. New money has to be created to just pay the interest on the loans, driving long term inflation.
    Glad to see that some in Parliament have not lost the plot on this. Maybe from this small early day motion ‘acorn’ a great oak will grow!Good luck

  4. How extremely well put, Ed!

    Thank you for your clarity and encouragement! I keep following Austin on his heels!

    With many thanks for your support,
    Sabine

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