"Shocking ignorance" from MPs who don't know where money actually comes from

[Tony Gosling]

Friday 27 October 2017 6:00am



"Shocking ignorance" from MPs who don't know where money actually comes from

http://www.cityam.com/274631/shocking-ignorance-mps-dont-know-money-actually-comes

<http://www.cityam.com/274631/http://www.cityam.com/profile/jasper-jolly>Jasper 
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Chief City reporter, mainly covering big banks, 
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Anti-government Protestors Turn Out For Theresa May's Farewell

Money doesn't grow on trees – but it doesn't come 
from the government either (Source: Getty)

The majority of Britain's politicians don't know 
where money comes from, despite being tasked with 
deciding how much of it ends up being spent, 
according to a poll of MPs published today.

Only 15 per cent of MPs surveyed answered 
correctly when asked a true/false question on 
whether banks create money when they make loans.

Almost two-thirds of the 50 MPs surveyed by Dods 
for campaign group Positive Money wrongly thought 
banks can't create money, while a quarter admitted they didn't know.

Read more: 
<http://www.cityam.com/274631/http://www.cityam.com/273721/politicians-get-lost-search-fabled-magic-money-tree>Politicians 
get lost in search of the fabled Magic Money Tree

In a far from stellar field Conservative MPs 
outperformed slightly “in this regard”, with 19 
per cent answering correctly, compared to only one in 20 Labour MPs.

More than three-quarters of the MPs surveyed 
incorrectly believed that only the government has 
the ability to create new money. Some 23 per cent 
knew this to be false, with Labour performing better than the Conservatives.

The 
<http://www.cityam.com/274631/http://www.cityam.com/company/bank-of-england>Bank 
of England has previously intervened to point out 
that most money in the UK begins as a bank loan. 
In a 2014 article the Bank pointed out that 
“whenever a bank makes a loan, it simultaneously 
creates a matching deposit in the borrower’s bank 
account, thereby creating new money.”

The perception of money creation has been 
complicated further by the unorthodox use of 
quantitative easing, in which the government 
creates money electronically, which is then used to buy financial assets.

Fran Boait, executive director of Positive Money, 
said: “Despite their confidence in telling the 
public that there is ‘no magic money tree’ to pay 
for vital services, politicians themselves are 
shockingly ignorant of where money actually comes from.

“There is in fact a ‘magic money tree’, but it’s 
in the hands of commercial banks, such as 
<http://www.cityam.com/274631/http://www.cityam.com/company/barclays>Barclays, 
<http://www.cityam.com/274631/http://www.cityam.com/company/hsbc-holdings>HSBC 
and 
<http://www.cityam.com/274631/http://www.cityam.com/company/royal-bank-of-scotland-group>RBS, 
who create money whenever they make loans."

 From South America, where payment must be made 
with subtlety, the Bormann organization has made 
a substantial contribution. It has drawn many of 
the brightest Jewish businessmen into a 
participatory role in the development of many of 
its corporations, and many of these Jews share 
their prosperity most generously with Israel. If 
their proposals are sound, they are even provided 
with a specially dispensed venture capital fund. 
I spoke with one Jewish businessmen in Hartford, 
Connecticut. He had arrived there quite unknown 
several years before our conversation, but with 
Bormann money as his leverage. Today he is more 
than a millionaire, a quiet leader in the 
community with a certain share of his profits 
earmarked as always for his venture capital 
benefactors. This has taken place in many other 
instances across America and demonstrates how 
Bormann’s people operate in the contemporary 
commercial world, in contrast to the fanciful 
nonsense with which Nazis are described in so much “literature.”

So much emphasis is placed on select Jewish 
participation in Bormann companies that when 
Adolf Eichmann was seized and taken to Tel Aviv 
to stand trial, it produced a shock wave in the 
Jewish and German communities of Buenos Aires. 
Jewish leaders informed the Israeli authorities 
in no uncertain terms that this must never happen 
again because a repetition would permanently 
rupture relations with the Germans of Latin 
America, as well as with the Bormann 
organization, and cut off the flow of Jewish 
money to Israel. It never happened again, and the 
pursuit of Bormann quieted down at the request of 
these Jewish leaders. He is residing in an 
Argentinian safe haven, protected by the most 
efficient German infrastructure in history as 
well as by all those whose prosperity depends on his well-being.
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