BANK OF ENGLAND AND MONEY SUPPLY

Motion Text

That this House notes that commercial banks have arrogated to themselves the right to create almost the entire UK money supply out of nothing in the form of a debt to them whenever they issue loans to the nation's firms, households and government; takes into account that, as a result, 97 per cent. of the broad pound sterling money supply now consists of electronic bank credit recorded as liabilities of commercial banks; further notes too that the bank-driven expansion of the broad money supply from 802 billion in 2000 to 1,682 billion in 2007 fuelled the over-indebtedness and house price bubble that caused the global financial crisis; and calls on the Government to enable the Bank of England to reclaim the exclusive right to create pound sterling money in such a way that would promote economic growth and stability and prevent further crises.