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article imageOp-Ed: Cameron, the banksters and the magic money tree

By Alexander Baron     Mar 7, 2013 in Politics
UK Prime Minister David Cameron has come out with a corker - there is no magic money tree. If that is the case, perhaps he could tell us where money comes from?
Earlier this week, in a rare outburst of common sense, the European Union decided to cap the bonuses paid to the banksters. David Cameron and his Chancellor, George Osborne, spoke out against that proposal. The reason is not far to seek, the City of London is one of the world's major financial centres, and - according to Boris Johnson and his crowd anyway - a major earner for this country. Part of the scaremongering used against capping their bonuses and against any regulation of this giant free-for-all casino is the claim that if this happens, all those talented people will leave for foreign shores.
This talent includes the likes of Kweku Adoboli, the tip of a very large iceberg. The big question is why should we want people like him and the other parasites higher up the food chain in London, in Britain, or in Europe? In October 1987, they caused Black Monday. More recently they caused the credit crunch. Now, they are responsible for so-called austerity. And we can't afford to lose them? Cameron and Osborne should fall into line with the EU on this occasion and allow their bonuses to be capped. Then, if they want to leave the country for Hong Kong or elsewhere, good riddance. Maybe they could go to China instead? Four years ago, the Chinese executed two men for defrauding hundreds of investors out of millions of yuan. Now there's a thought!
Today, Call Me Dave was again making a fool of himself, this time in a speech in which he claimed there is no "magic money tree". Really?
The truth is very different, broadly speaking money can be minted/printed or created out of thin air as figures in a book or blips on a computer screen. If you belong to that diminishing number of people in the Internet age who don't realise this, there are a number of authoritative sources that will confirm it. Try here; or here - a fable from 1933; here - a full length documentary; or here - the Bank of England.
Generally speaking, governments can obtain money by one of three methods: creating their own, taxation or borrowing. Taxation diminishes the purchasing power of all concerned, it is also expensive. Borrowed money has to be repaid at interest, so this is also expensive. Printing or minting can be done for the cost of the paper or metal, but creating credit costs nothing. If the banks can do this, why can't the governments of the world? Clearly they can, the main reason they don't is because most of our politicians - the ones who matter - are in the pockets of the banksters. Others are just plain dumb.
This opinion article was written by an independent writer. The opinions and views expressed herein are those of the author and are not necessarily intended to reflect those of DigitalJournal.com
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