This is a text for a petition that I am planning to submit to the Treasury Select Committee. Please let me know of any changes you might wish to see before you’d be willing to put your name to it. Thanks.
Stop the “Cash Crumble” to Equalize the “Credit Crunch”
“We, the undersigned, request an inquiry into the long term development of the money supply, in particular the share of cash and the share of credit in the economy. Since nobody questions who generates the interest necessary to pay for credit, we object to buying into the myth of a “credit crunch” while on-line statistics of the Bank of England show that the cash share of the money supply has continually dwindled. The reality is therefore a “cash crumble”.
A lot of us have studied our financial system over many years and some have taken legal advice resulting in Parliamentary scrutiny via the Treasury Select Committee. Others have submitted “Green Credit for Green Purposes” in response to the Committee’s inquiry into the Stern review which was published in February 2008.
For an economy with believable inflation rates and the ability to preserve wealth, it is necessary for the Government not to raise taxes nor to borrow but to stop the “cash crumble”.
Given that we all live longer, we request an independent inquiry into the long term money supply as the tap that should fuel our economy sustainably. Wholesale and retail credit have monopolised the supply. To compensate for the imbalance generated, the Government should spend cash into the economy and gradually increase its share for the sake of future generations. Instead of growing the financial economy, it should use its ability to create “cash” or “narrow money” to fuel genuine growth in the real economy to cover pension bills fairly, pay for public services adequately, make public buildings energy-sufficient and to adapt to climate change effectively.
Most of us have been victims of rising prices that don’t match inflation figures and many of us have experienced practices of banks and other authorities that we don’t consider honourable. We are all aware of social problems that can be reduced to a financial system that is neither sustainable nor fair. We therefore urge the Treasury Select Committee to organise an inquiry into the long-term development of the money supply.”