Can you do anything with it? Otherwise it will remain extremely worrying that the current crisis will not be solved in the long term

Credit Money revenue offset. For Today Programme

We need basic economics and practical banking, not recent overblown stuff or hesitancy.
The point is to clarify Ministers’ thinking with these brief points

• A substantial engine of growth was the construction industry and the housing market, especially since the off-shoring of industry. In the UK - loans created by the commercial banks created £50 billion per year of new money up until the crash began, now it is one-tenth of that. This is the missing part causing instability.

• There’s talk of “Taxpayers’ Capital” this morning (BBC Today 7-10-2008) by the bankers/finance ministers/FSA. OK! (if this is in code to calm the banking sector and the measures below are in train). Not OK (unless it is new money created for the public purse) simply because interest payments will take money out of the existing supply and the cycle will start again – there would be no road map to stability without this change (CONCERN IS I CAN SEE NO PROMISING SIGN) :

• We suggest that to slow the settling down of the boom about £25 billion of new money is needed over the next year and thereafter (starting rapidly) and that energy conservation using a new well proven form of super insulation is the way to start to spend it . This will do the two most urgent things – give the poor and pensioners with bigger bills some hope and kick-start the economy (and Labour’s hopes?). That should get underlying property inflation back down around 5% because it is half the new money that was being created pre-boom which was often around 10% p. a.. NEW confidence!

• The mechanism by which this new money should be created is very like the old: banks issue the money (and other commercial credit corporations do it) but they would no longer be able to create new money which caused the boom and bust conditions without payment of an interest charge in future. They will be required to separately account for new credit money and pay to the Exchequer the Base rate of interest on it. Meanwhile, there may need to be some emergency money (SPECIAL MEASURES) created for public projects and/or insulation efficiencies to get a rapid start to the projects for public good and climate change reversal (see STEERglobal Paper Every Town an Eco Town Appended). It would be best if these were done in concert with the fair return from an Environmental Tax for global benefit and with all nations working from the same page. The over confidence noted above would then be replaced with reason - a global solution.

TO FINISH
Re-iterate that in the UK we need an announcement that the new direction for credit money to the public good will be in the Pre Budget report and that in the interim an injection will start for external insulation and other thermal measures to the sides and rear of buildings..