Just read through the whole
Just read through the whole debate. It was obviously made for MPs with odd ideas on money.Here's Douglas Carswell, once again committing himself (and now UKIP?) to supporting "free market capitalism":
Quote:
Douglas Carswell (Clacton) (UKIP): I congratulate the hon. Gentleman on bringing this important subject to the attention of the House. Does he agree that, far from shoring up free market capitalism, the candy floss credit system the state is presiding over replaces it with a system of crony corporatism that gives capitalism a bad name and undermines its very foundations?
And Austen Mitchell (Labour):
Quote:
I speak as a renegade social creditor who is still influenced by social credit thinking; I do not pledge total allegiance to Major Douglas, but I am still influenced by him.( …) Some argue—Major Douglas would have argued this—that credit should therefore be issued only by the state
In fact, there was a disagreement amongst the Monetary Reformers as to what precise reform was needed, with those on the left like Mitchell and Michael Meacher advocating that the State should issue all money and those on the right like Baker and Carswell arguing that the state should not interfere.The only person to give anything like a realist picture of how banks operate was Andrea Leadsom, the Economic Secretary to the Treasury (presumably on the basis of what her officials wrote for her):
Quote:
Whenever a bank makes a loan, it credits the borrower’s bank account with a new deposit and that creates “new money”. However, there are limits to how much new money is created at any point in time. When a bank makes a loan, it does so in the expectation that the loan will be repaid in the future—households repay their mortgages out of their salaries; businesses repay their loans out of income from their investments.In other words, banks will not create new money unless they think that new value will also in due course be created, enabling that loan to be paid back.