Positive Money and that £375 billion in QE given to the banks

04_august_2015A letter a day to number 10. No 1,168

Tuesday 04 August 2015.

Dear Mr Cameron,

When the Bank of England can create £375 billion of new money, that’s nearly £6,000 for every man, woman and child in the UK, and give it to the banks and financial markets entirely free of charge, your government cannot possibly claim to be the party for ‘hard working people’ or ‘for people who want to get on’. The 5% of the wealthiest people who own 40% of the stock market benefited from such an enormous hand out to the tune of £128,000 per household.

I am not sure in what way betting on the stock markets could be called hard working bearing in mind these are the people who, when the going gets tough, they get going, running for the hills with as much loot as they can plunder from the stock markets and the small matter of crashing the stock markets into the bargain seems to bother them not at all. Of course when such a thing happens, businesses crash along with jobs, people starve and yet it is starved labour which eventually brings recovery, rebuilding the real economy and putting life back into it for the hoarders of wealth to begin taking punts once more.

Positive Money (PM) is a non partisan organisation calling for banking reform and the establishment of a fairer and more socially just, democratic, money system that works for the nation as a whole and not just for the banks and financial markets and the wealthy few.

Had that £375 billion been invested in the real economy, building schools, hospitals, housing, infrastructure, the NHS, creating jobs and circulating money, PM have calculated every £1 of that £375 billion would have grown the economy by £2.80. Instead, via the so called trickle down effect, every £1 of that money grew the real economy by just 8 pence.

Back in the real world your government scrapped plans to build 715 new schools and also, crucially, 1000 flood defence projects. You may remember the floods in the winter of 2013/2014 which devastated thousands of homes and lives and your promise that aid money would be no object. Conservative MP Anne McIntosh, who chaired the select committee that scrutinises the department for environment, food and rural affairs said of the cuts to flood defences that it could be a “classic example” of a false economy. She certainly wasn’t wrong, eh?

Had that £375 billion been invested in the real economy it would have yielded over £1 trillion which would only have kept on growing and Britain would have recovered from the criminal behaviour of the banks, instead we have Osbornomics and permanent austerity, the number of Trussell Trust food banks alone having increased from 56 in 2010 to 445 in 2014/15 with two new food banks opening every week in your ever escalating, and entirely ideological, war on the poor.

How to waste £445 billion? – The Failure of Quantitative Easing (VIDEO)





The Foodbank Dilemma (part 1 of 2)

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