Positivemoney.org.uk – a solution to the debt crisis?

I picked up a copy of Positive News that someone gave me on Thursday, and the front page was splashed with the headline: “Change money, change the world.” Some innovative young economists, led by Ben Dyson, see that the problems of the current debt crisis flow from the way money is created (in England) not only by the Bank of England but also in an uncontrolled way by banks every time they lend.

Eight percent of bank lending is productive, “whereas the remaining 92% goes on property and financial speculation.” For more info, see the article in Positive News, or go to the Positive Money web site.

If this is the answer, we need it!

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Britain and the Eurozone – Cameron’s veto

Surely it’s too early to judge whether David Cameron was right to veto the new EC treaty. As time goes on, I think I’m admiring his bravery. On a matter of principle he said “no” while other leaders said “yes” which is really “maybe” as they need to take the issue to their parliaments. Will David Cameron turn out to be a sole voice, or a leader of a movement?

Of course, as the papers are saying, the publicity of this obscures the absence in the plans presented of a solution to the problems of the Euro – and do we really believe more central control is the answer to everything in the 21st Century?

All this leads me to the best comment I’ve seen (in this week’s The Week)  from Terry Smith CEO of Tullett Prebon (on BBC Radio 4 Today Programme 9th December 2011), “Britain is as isolated as somebody who refused to join the Titanic just before it sailed.” I like that!

British debt

Proportionately, levels of British debt are not as high as they have been in some past times, writes Paul Krugman. Are we wrong to make such a fuss?

It may be that on previous occasions we could see how we could repay that debt through increased economic activity, but that this is not so clear just now, hence the anxiety.