EDM | Bank Of England And Money Supply

Posted on: 18th July 2011

Andrew George MP has signed EDM2075. Motion reads: “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.”