"I warn you, Sir! The discourtesy of this bank is beyond all limits. One word more and I—I withdraw my overdraft."  Cartoon from Punch Magazine Vol. 152, June 27, 1917

“I warn you, Sir! The discourtesy of this bank is beyond all limits. One word more and I—I withdraw my overdraft.” Cartoon from Punch Magazine Vol. 152, June 27, 1917

The following is a letter submitted to The Guardian, in response to an editorial. It’s probably the strongest argument I’ve seen for the nationalisation of banks. Most people I’ve met don’t like banks or bankers, but I think most of us have come to accept them as almost a ‘necessary evil’. I think we really need to ask ourselves and our leaders some hard questions.

Why are private banks and financial institutions allowed to have so much control over our money supply?
Banks lend out money at interest to us, but why couldn’t the government exercise this function without charging interest and cut out these ‘middle-men’?

I know that a number of economists have been arguing for some time, that governments which have control of their own currency (such as the U.K., The U.S., Australia, NZ and Canada) should be able to create/lend money into the system to create jobs, build infrastructure and deal with much of our poverty – that in fact all this talk of austerity is just another con-job on the population. Australian economist, Bill Mitchell, has a site which discusses and promotes the idea that sovereign governments should use their power to create money, to ensure full employment in the economy. I’ve put down links to a number of his posts at the bottom of this post.
At any rate, have a read of this letter, and if you feel as I did when I read it, pass it on. Let’s get a much needed discussion on this going.

 

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