Positive Money want to end fractional reserve banking and have the state create money directly. According to them, when quantitative easing created £375 billion, only £30 billion was made available for the government to spend, at a time when construction workers were being laid off and school building plans to fix leaky buildings were cancelled (which juxtaposition made for a nice Facebook meme). The quantitative easing also caused a stock market bubble and made some rich people even richer.
Instead, the government could have simply invented some sovereign money, debt free with no bookkeeping, and paid the builders to fix the schools. No unemployment and happy children.
Detlev Schlichter points out that it is the government who encourage fractional reserve banking, and all that really needs to happen is for them to stop doing this and banks will create some money but not nearly as much. Also, having the state create money is no less a recipe for disaster than having the banks do it, and maybe more of a disaster. The same economic distortions will apply.
If I attempt to apply Detlev’s thinking, I imagine that perhaps the state invents lots of money and gives it to schools to spend on building repairs. Suddenly the demand for construction is skyrocketing. Prices go through the roof. This stimulates supply. Software developers and professional bloggers quit their jobs for better paid jobs in the construction industry. Whole new construction businesses are started. Pensioners put all their savings into construction industry shares. And then all the school buildings get repaired, and the government moves on to curing some other perceived shortage, and the construction bubble bursts and you are back to having unemployed construction workers and starving pensioners.
Now, Positive Money responded to Detlev Schlichter. It turns out they more or less agree with him — apart from the bit about how we do not need anyone at all to create money, which they never got around to addressing directly but I gather from their criticism of Bitcoin is because they think without inflation people will speculate and not spend. But, importantly, they do not trust politicians to control the money supply either. It turns out they think some sort of “public and transparent body” can do it.
The whole thing strikes me as wishful thinking. It sounds so good it might even get somewhere. You get to bash bankers and have free money and keep politics out of it. All you need is for the public and transparent body to stay truly transparent and public and be able to manipulate the economy with precision from a central point of control. What could possibly go wrong?
It is graffiti for goodness sake, and here we have assorted people arguing about whose graffiti it is. Oh what a strange world we live in.
It is an amusing work I grant you, and if someone can find a mug who wants to lift it off and buy it for real money, I can see why the lawyers get called in… but please spare me the “Banksy is a National Treasure” crap. He is a talented criminal who does not think ‘crimes against property’ are really crimes (and the reason they are is because the crimes are actually not against ‘property’, they are against the owner of the property).
I wonder if he expects anyone to respect anything he owns, such as his legs for example? Fortunately for him not everyone thinks the way he seem to.
That said, where he to find himself in a prison cell for said ‘crimes against property’, he should probably be given a brush and some paint to pass the time.
I suppose some people who loathe rock festivals and want to pretend how much they enjoy playing the “working class hero” line might sympathise with Bruce Dickinson, who is the front-man for group Iron Maiden, in refusing to play at Glastonbury for it being “middle class”. (He was privately educated, which is ironic.) I normally really like Dickinson (if not his music, at all) due to his being a qualified pilot and having fairly pro-free market, no bullshit, views. And he cannot stand Coldplay and all that dreary stuff, so he must be a good egg overall. But something about all this makes me think, “Fcrissakes, can we just take class out of it and enjoy the music on its merits? Does it always have to have some frickin’ socio-economic agenda?”
Here is the item:
Bruce Dickinson, who attended the private Sharrow Vale boarding school in Sheffield, said the band had no interest in playing there. He said: “In the days when Glasto was an alternative festival it was quite interesting. “Now it’s the most bourgeois thing on the planet. Anywhere Gwyneth Paltrow [the actress] goes and you can live in an air-conditioned yurt is not for me.”
Dickinson, who is also a qualified commercial pilot, said he was glad he was instead playing at hard rock festival, Sonisphere, at Knebworth Park in Hertfordshire in July. “We’ll leave the middle classes to do Glastonbury and the rest of the great unwashed will decamp to Knebworth and drink lot of beer and have fun,” he said in an interview. Fellow heavy metal band Metallica are headliner’s at this year’s Glastonbury Festival, which starts next week and is attended by more 100,000 people. Tickets for the event, which sells out in minutes, are £210.
I can see his point about having a raving good time with cheap beer etc. Heck, I went to Le Mans last weekend to watch the 24-hour endurance motor race, which is the petrol-head equivalent of a rock festival with very, very fast cars blasting around a track in central France. There are lots of overweight middle-aged, lower-middle class guys (few women) who attend it, as well as the odd toff, group of rowdy youngsters and so on. I suspect even a few leftie-liberals go, in a guilty-pleasure sort of way. Think of Essex man and his European/North American versions all having a great time away from the other half and the kids. My wife stays at home with her friends and would not go there for love or money. And of course it is gloriously loud, vulgar, a hymn to non-PCness. But I don’t worry about the class backgrounds of those who go and would be a pretty sad individual if that sort of issue coloured my enjoyment. This weekend, I am in the Royal Enclosure at Ascot to watch the horses, and it doesn’t get more “upper class” in a cliched way than that.
Can we please, just for once, take the class obsession out of every such event? Please. Pass the champagne.
The purpose of the NHS is political, not medical. In the UK, in our Coronation of the State as our Bountiful Lord, it is the Crown, the dole is the Orb and State Education is the sceptic sceptre.
Those who question the State threaten to leave you without medical treatment, leading to a horrible death, or starve or be illiterate. Yet a Slaughterhouse like the Mid-Staffs can kill on a scale that an early 1940s German bureaucrat might admire, and nothing happens until hospital the pile of corpses becomes too obvious for excuses not to be shuffled out.
- Samizdata commenter Mr. Ed
The only serious black mark against the NHS was its poor record on keeping people alive
- This was written in all seriousness in a Guardian (No! Really?) article praising the NHS. Seriously. Not joking.
Is it too much to hope that one day these uneducated and bigoted Yorkshire folk will understand that claiming benefits, fly-tipping, littering the streets, threatening people and playing loud music all night – these were the things of which they complained – are simply expressions of cultural diversity, to be warmly embraced? Why don’t they understand that we all have to get along?
- Rod Liddle
When it comes to “climate science”, I have for quite a few years now, as my sneer quotes make clear, been inhabiting the land of confirmation bias. So, I will not say that this proves me right. It merely confirms me in my state of ever more glacially advancing contempt for the “science” here described:
Several months afterwards, the society’s ‘newsletter’ was published. It contained a special section on the conference at which I had spoken, with a brief description of each talk, the work behind it, and with thanks offered to each speaker. I searched for my name – nothing. My presentation was ignored in its entirety.
“Disheartening” isn’t the term I would use, and I seriously considered giving up on the entire idea of academia, and getting a nice little 9-5 job. But, I am still here, still working on the problem, still uncovering, lets call them ‘anomalies’, in many areas, which the scientists involved have no clue how to explain, but about which they will hear no view other than their own.
Biases being confirmed all round, it would seem.
Food banks provide invaluable support for families on the breadline but the fact they are needed in 21st Century Scotland, as across the UK, is a stain on our national conscience.
So says Jamie Livingstone, head of Oxfam Scotland, in a report on the increase in the use of food banks. Quite right too. That the nation has allowed its state to impede economic growth to such an extent is indeed a stain on its conscience. The nation should probably do something about that. Food should cost almost nothing by now.
The report said changes to the welfare systems, low and stagnant wages and increases in food prices were all contributing to the increase in numbers.
Indeed: welfare makes the nation dependent on an ever expanding state, inhibiting the growth that would make food prices fall in relation to human labour prices.
Of course I am quoting out of context. What Oxfam and the Trussell Trust, who co-authored the report, are really saying is that more state welfare is needed.
Government ‘names and shames’ minimum wage underpayers!
Says our tax funded news bringers at the BBC.
So can we also now get a list of companies who did not create certain jobs for people at all because the minimum wage made it uneconomical to do so?
The minimum wage: a cunning government programme for making bourgeois statists feel good about themselves whilst simultaneously motivating companies to automate and reorganise their businesses to employ as few low income people as possible.
I am curious… have the odious statists at the Daily Mail been getting ‘sponsorship’ money from Britain’s Bin Bag manufacturers?
‘We are not trying to tax people. We are trying to change people’s behaviour, encourage much more environmentally-friendly behaviour’
Ed Davey, Energy and Climate Change Secretary, upon having just imposed a tax on people…. without trying apparently.