This is the government's response to the bank bailouts and is necessary in a debt/based monetary system where increased purchasing power is the result of growing debt and where a diversification of debt provides overall stability and market confidence.
In the 1840s they pushed it just a little bit too far and that caused inflation, destabilised the economy.
So in 1844, the Conservative Government of Robert Peel actually passed a law that took the power to create money away from the commercial banks and brought it back to the state.
So since then the Bank of England has been the only organisation authorised to create paper notes.
Since then everything has gone digital and what we now use as money is the digital numbers that commercial banks can create out of nothing.
The problem was that they did not include in that legislation the deposits, the demand deposits, held in banks by individuals or electronic forms of money which essentially is what those deposits are.
They are used to their own way of handling money and they try and implement their own idea of how their small household economy works into the national economy.
And of course it just doesn't work out at all.
By 2008 the outstanding loan portfolio of bank-created credit, also known as commercial bank money, stood at over 2 trillion.
As recently as 1982 the ratio of notes and coins to bank deposits was 1:12.
The second recommendation was the ring-fencing of retail banks. Although portrayed as harsh to the banks, it can also be interpreted as a benefit, as retail banks will now have a lower capital requirement ratio than investment banks.
In 1944, at Bretton Woods, the US and the UK began to negotiate how to govern the world economy, the world monetary system, and came up with the World Bank and the IMF, and a series of other institutions designed to manage the global currency.
As people become poorer, they become even more dependent on debt, and this at a time when efficiency and mechanisation have improved dramatically.
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.