Printing money for constructive uses ‘threatens’ to win Corbyn the next election: Graeme Leach
Some time ago this site recorded a letter written by Charles Bazlinton, director of the Winchester-based community bank, Local First, to the Financial Times. It followed Martin Wolf’s comment on quantitative easing: “The essence of the contemporary monetary system is creation of money, out of nothing, by private banks’ often foolish lending.”
Mr Bazlinton asked: “When is the penny going to drop with the coalition government so that a public agency is set up to direct newly-created money to productive, non-inflationary purposes? The creation of such money used for new infrastructure in particular could be issued debt-free and interest-free. Read more from Charles on this subject on the site just discovered: http://the-free-lunch.blogspot.co.uk/.
We see that the penny has dropped, and is causing concern
In City AM, Graeme Leach, Legatum Institute senior fellow, writes that Corbyn could win the next election with his “people’s quantitative easing” – the most serious threat to the government:
“In Corbyn’s world, a National Investment Bank would finance transport, energy and broadband infrastructure and issue bonds to finance the projects, which the Bank of England would be instructed to buy”.
He continues ruefully, “OK, central bank independence is out the window, but that nuance will be lost on the electorate”.
Ten years ago that would have been the case but the public has moved on: many now understand the system up to a point – thanks to the work of people reported on this site and more widely elsewhere. The infrastructure improvements and purposeful employment created by People’s QE would be greatly valued and stimulate the wider economy.