The World Bank recognised in a 1993 study that this method of intervention in credit allocation was at the core of the East Asian economic miracle.
Thus it's a very regressive policy framework that the government's embarking on, where the risk is moved onto those who are most vulnerable, and if there is another financial shock, if there's an oil shock for example, the people who will pay the penalty are the poorest people in society or homeowners for example, who will fall into negative equity if interest rates go up even 1 or 2 percent there will be really big problems.
The government would no longer be able to get access to large sums of money to pursue armed conflict, if this was not sanctioned by the populace. We would be able to see exactly what they're doing with the power to create money. We would be able to see how much they're creating and where that money is going. And that is pretty much the only way we can get control over the power to create money and stop it being abused. The Money Reform Party was established in 2005, just after the 2005 general election. The idea of the Money Reform Party was that we would have this basic core issue that people would agree with.
This idea that you should have floating exchange rates, weak regulation particularly of financial markets, minimal government interference or involvement in what the market does, and that's more or less how the world operates.
The craze for tulips, black tulips being a mythical ideal of what somebody could genetically engineer through cultivation after many generations, became a mania in the Netherlands in the 1630s.
So, a bank creates our nation's money supply as well as making loans for profit. The government cannot allow the banking system to fail because, if it did, over 97% of all money would disappear.
And they were worried there wasn't enough gold to honour the exchange rate of the French franc, so they sent a gunboat to New York harbour to ever so politely "ask for our gold back, please.