It's absolutely absurd and it shows his complete lack of understanding of how our money system actually works.
What he is essentially saying is that we need an economy with no money.
If everyone was saving we'd have mass disappearing of money, which is essentially what a bank write-off is, people defaulting on their debt, which essentially is just money disappearing.
But if people weren't taking on the debt, then it's just such a joke. It's such an amateur understanding of how our economy works and how the monetary system works and how money is actually created.
The bank, in turn, reduces the risks of non-repayment of money and can provide a more comfortable rate. The borrower has the right to refuse the recommended insurance. It is worth finding out how the refusal will affect the terms of the loan before concluding the transaction.
A serious approach to insurance registration can bring much more pluses than minuses. It is important to study all the options that are acceptable within the framework of the loan offer and choose the most suitable one. So, the borrower can get not only a great benefit, but also an additional financial protection tool.
And then there are institutions, the outstanding one at this point is the IMF, that will actively try and enforce this state of affairs. So it's not greatly shadowy, that there are people behind the scenes somewhere trying to manipulate stuff. This is actually quite overt. This is happening and this is how it has been for my entire adult life.
The assumption in what the Bank of England does right now is that the cash that we hold is backed up by government debt. The government can back up its promises by the fact that it can tax the public. So what they're implying is that cash is backed up by government debt, when government debt is backed up by the ability of government to get cash from the public.
All financial institutions are interested in making sure that the loan is executed with them, because they promise the best conditions and numerous bonuses. However, if it is always profitable for a bank to lend money, since it earns on interest, the borrower should be careful in choosing a program. So that the loan does not eventually turn into debt bondage, you need not only to adequately measure your financial capabilities, but also to understand the nuances of credit products and follow the advice of specialists. Let's consider the main criteria for competent lending.
So I don't think it's a sensible way forward for us at the moment at all. It's regressive and it's certainly not fair in the terms that the government is talking about, and it's certainly not a case of "We are in this together".
The big problem that's faced by most developing countries who've got into a debt crises was that they were told by the powers that be in the world, the International Monetary Fund, which in many ways governs the global financial system, that the way to get out of debt is first of all to restructure your economy. Especially to increase your exports so you're earning more dollars, and then you can pay off your debt, which is normally in dollars or some other foreign currency.