Banks are the most heavily subsidised businesses
in the world, specially protected by governments. While the money runs out for the rest of us,
the largest private banks still thrive. This is because they get the biggest subsidy of
them all – the licence to print money. Hard to believe? Martin Wolf, the Chief Economics
Editor at the Financial Times, said it recently: “The essence of the contemporary monetary
system is the creation of money, out of nothing, by private banks’ often foolish lending…” You heard that right. Private banks create
money out of nothing! Then they loan it to us and ask for interest on top! If you’ve ever wondered why the bank buildings
around the world soar higher than any palace or spire ever did, you now have the answer. But the banks don’t simply print money using
secret printing presses in their basements. They don’t have to. Like so many other things
these days, printing money has now gone digital. With the popular use of debit cards, electronic
fund transfers, and internet banking, only 3% of the money in the UK is now made of paper
and metal coins. The other 97% is entirely in computers. Electronic money is convenient
for everyone, but it’s especially convenient for the private banks, since they own, run,
and control the entire digital money system. And what do they do with this special privilege?
Do they channel new money, the blood supply of the nation, towards the things we need
like hospitals, schools, universities and public transport? Not if it doesn’t make a profit for them.
Instead they use their licence to print money to gamble on the financial markets and pushing
house prices out of reach of ordinary people by pumping hundreds of billions of pounds
into risky mortgages. This is exactly how the banks caused the financial crisis, and
now the rest of us are being asked to pay for it. If we can’t afford to run hospitals and build
schools, can we really afford to subsidise the financial industry? Should we have to
live with less so the bankers can have more? This is ludicrous, and it’s time to put a
stop to it. The private banks can’t be trusted to hold the reins to our entire economy. We need to take away the bank’s power to create
money out of nothing.  This will stop them from causing yet another financial meltdown
and allow us to afford the crucial services that we as a society need.