Banking reformism seems to be
Banking reformism seems to be rampant at the moment. Here’s what was proposed in yesterday’s Mourning Star (handed out for free at the trade union rallies) by Jerry Jones, their economic expert (and also that of the Communist Party of Britain). He’s talking about how to re-impose the sort of credit controls that existed in the 1950s and 1960s:
Quote:
This could be achieved by restricting bank lending to, say, 80 per cent of savers’ deposits plus what the Bank of England was prepared to lend banks at an interest rate that it decided depending on the economic circumstances.
This amounts to calling for banks to maintain a cash reserve of 20 percent of deposits. Not quite as economically illiterate as calling for them to hold a cash reserve of 100 percent. But just as irrelevant.