Fighting a revolutionary cause against the main UK political parties UKIP achieved BREXIT. Its future role in this cause is to ensure that our Conservative government does return our sovereignty, control of our borders and secure an acceptable trading relationship with the EU – i.e. A BREXIT as envisaged by UKIP and as understood by UKIP grassroots members (The ‘People’s Army’).
Already, the media is saying (a) UKIP has done its job and is now a spent force (b) as a result it that many are returning to the Conservative Party or (c) if it becomes the next Opposition Party it will be far right version of the Conservative Party.
However true these views are, UKIP, since it claims to be a truly genuine party for the wage earning majority and to assist this will build the UK into an independent flourishing global business nation, should now adopt a new revolutionary cause that is of equal if not greater importance than BREXIT. It should have a flagship policy aimed at the economic welfare of current and future UK wage earners and to lift them from the status of debt slaves for the financial oligarchs and multinational companies.
UKIP should include as a primary policy in its revised Manifesto for the next election the removal of the privilege, given to commercial banks by successive parliaments, to issue and rent out our money supply to businesses and individuals in their private interest, and authorise the state to issue legal tender money in the public interest. Also, the issue of state created interest free money for public services and public infrastructure expenditure instead of borrowing at interest from banks and financial institutions that is paid back in taxes.
Such a reform will also mean that commercial banks, like all other businesses, are subject to the laws of capitalism and can become bankrupt without risk to depositors accounts. Additionally, the magnitude of ‘booms’ and ‘busts’ would be significantly reduced and saved money would hold its value.
UKIP could approach this policy in 3 stages with the first two overlapping:
(a) Support the call made in a cross party back-benchers debate for an Inquiry Commission on ‘Monetary Reform and Society’.
(b) Oppose the creation by the BoE of massive sums of state created money (Sovereign Money) for Quantitative Easing to induce banks to increase lending which mainly benefits banks’ profits rather than their lending at reasonable rates to the Productive Sector. Instead, the BoE should have quantitative easing directed at the Productive Sector creating tranches of sovereign money and paying into the government account which the government would spend in building public infrastructure and social services which would involve private businesses and increase reasonable paid employment. This could generate similar prosperity that was achieved in Canada between 1938 and 1974, referred to in the Appendix (Part III).
(c) Press for a law that updates the Bank Charter Act of 1844 in line with the computer age where banks will have their privilege of creating debt based money and the state will not only create sovereign notes and coins (only 3% of the money supply) but also sovereign electronic money.
Who would be likely to attempt implementation of the above policy?
The leadership of the Tories being close to the Financial Sector and Revolving Door practice are unlikely to implement fundamental monetary creation reform other than increasing regulation of the existing system which the banks will always circumvent.
It is also problematic that the leadership of UKIP would see it as a priority ‘top down’ policy initiative despite the benefit to UK businesses and wage earners. If the above proposals are to be considered it is likely that it will require ‘bottom-up’ action by those grassroots members who attend branch meetings.
As many of you know for over 6 years I have been exhorting successive UKIP policy coordinators to confront the dysfunctional nature of our debt based money creation system and consider its reform within the UKIP Manifesto. In this effort I have singularly failed.
I have also continuously encouraged branch members to acquaint themselves with the Legalised Scam that is our current money supply creation system where this most important utility, required for the execution of trade and hopefully as a store of value, is created in the interest of privately owned commercial banks rather than in the public interest. With the current system austerity policies and the selling off of public assets, paid for by previous taxpayers, lack of investment in the productive sector in favour of the financial sector resulting in obscenely high salaries of the CEOs of major companies, lowering of workers real wages and exorbitant house prices is inevitable whichever political party is in government – a new feudal system has emerged.
Positive Money is an organisation dedicated to educate the general public including approximately 85% of MPs that 97% of our money supply is created by private banks in their private interest and only 3% is created as sovereign legal tender notes and coins by the State and in the public interest.
Banks are a rentier class providing money at a rent (compound interest) to the productive sector and in so doing impose an unproductive overhead on the labour and invested plant and equipment that actually produces real goods and essential services. This means that our money creation system, given as a privilege to the banks and operated for their private profit is structurally extractive – from the real productive sector to the financial sector where investment is made in existing assets rather than in new goods and services..
This results in the systemic transfer of real wealth from the majority of the population, mainly those engaged in the production of real goods and services, to a small elite at the apex of the financial sector and multinational companies. The assets of this financial oligarchy are increasing exponentially (increase in power) whilst conversely the liabilities of the government, businesses and private citizens are decreasing exponentially (decrease of power). Since banks create our money supply as debt and largely determine how it is allocated this undermines parliamentary democracy and presages a new feudal system where those working in the productive sector are working on a treadmill in order to feed the claims on wealth by the ‘non real productive’ financial sector. The real wages of the majority will fall and their savings will not hold their value resulting in a continuous rise in the income gap between the majority of the people and the small financial elite.
In contrast, with money creation reform the sovereign state could provide the essential utility of money in the public interest without imposing a rent on the state, the productive sector and the general public for its use. Sovereign money creation could be carried out by an accountable independent body in a quantity that mirrors changes in GDP aimed at achieving near zero inflation where money really becomes a store of value and the generated state seigniorage income can be used for a mix of tax offset, public infrastructure investment, BoE loans to banks specifically earmarked for SMEs, or for investment projects that will provide future productivity and possibly provide a citizen’s income. The quantity created will be specified by committee overseen by Parliament not by banks or by party politicians seeking votes. However, government would determine how new money was spent into the economy.
To achieve this, Positive Money shows that new legislation is required to update the Bank Charter Act of 1884. The updated Act would prohibit commercial banks from creating Money as Debt in their own interest and our money supply would be created debt free as sovereign money by the BoE in the people’s interest. Banks would have to lend from people’s savings with a broker’s fee (acceptable interest) and operate as people generally believe that they do, a belief fostered by mainstream economists. If a bank becomes bankrupt it will be wound up like any other business but the depositors’ money will be safe.
This paper is to gain support within a UKIP branch as a precursor to achieving wider support throughout UKIP, and for UKIP to include monetary reform within its Manifesto following Brexit.
It is questionable if it may or may not be permitted under the EU Lisbon Treaty Article 123 to carry out the Positive Money monetary reform proposals.
That is another reason for Brexit.
There is copious information on the Positive Money Website Blog
I am sure you will enjoy the song entitled ‘Change Money Change the World’, composed and sung by a member of Exeter Positive Money Group and published in collaboration with the Principal of a Cardiff recording company who is a member of Cardiff Positive Money Group. To save you initially trawling through the Blog, watch
(a )The short presentation entitled ‘Could these 3 Simple Changes Fix the Economy’, or
(b) the longer presentation entitled ‘Does Money Grow on Trees’ by Positive Money researcher Frank van Lerven that he gave at the Z-day event in London on 2nd April 2016. It gives intellectual support to the sentiments expressed in the song .
[Ed: Part II to follow on UKIP Daily]