Put central bank in charge of regulating the money supply

From: Robert Reynolds, Harrogate.

AS the TUC declares banks should be nationalised, there is a cheaper way. Ridiculed as “crazy” economics, this states banks are responsible for the money supply and so inflation, interest rates and unemployment.

The Financial Times writes that the banking sector does indeed control the supply of money in our economy. Too much lending and we get rising inflation, rising interest rates, unemployment and recession. Too little lending and the investment isn’t there to boost employment and so unemployment and recession remain.

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What we now need to do is amend the 1848 Banking Act to include bank deposits. Control 
of the money supply would then be the sole preserve of the Bank of England.

This institution would then assess how much money needed to be spent in our economy and would advise the Government accordingly.

The Government would have access to “free” money. There would be no interest payments, no debt to repay.

When the economy begins to recover, the Bank of England would reduce the amount 
of money supplied and so 
avoid inflation and high interest rates.

From: John Watson, Hutton Hill, Leyburn.

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WE have just had a month of competitive sport by young people from all over the world which has brought out the very best in the human race . Forgive the cliche, but it has made us feel proud to be British.

We have seen sportsmanship like we have never seen before in international sport.Sportsmanship which is part of the British character but which is not always apparent. We have seen spectators from all nations mixing together like long-lost friends, and they have turned out in their thousands to show their appreciation of what this country can do. Crowd trouble has been conspicuous by it’s absence.

The dedication of the competitors to their respective sport was incredible. Some have hardly had a life for four years preparing themselves for the ultimate prize. They have given me more entertainment and satisfaction than all the prima donna millionaires in other sports all put together.

Now it is back to gloom and doom. The bullying union bosses are threatening mayhem with marches and strikes, the politicians are shouting at each other, Richard Branson is losing his trains and the euro is going bust. The 2012 Olympics and Paralympics had us all riding on a cloud, let’s hope that basic greed and selfishness aren’t going to spoil it.

From: Tim Mickleburgh, Boulevard Avenue, Grimsby.

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ED Balls has said to a delegate at the TUC Conference that jobs matter more than wages. Trouble is, if you take that argument to its extreme then you’d never raise pay rates, including the minimum wage level.

What’s more if staff continue to have a wage freeze they will be losing out in real terms, and have less to spend in the economy. Hardly, therefore, the way of bringing about economic recovery.