EXPAND CENTRAL BANK POWER?

I don't have full access to the FT but the internet edition is carrying a comment by a Stephen Green, who I assume is the same Stephen Green who is Chairman of HSBC.

Green suggests that the one power that the Bank of England has to control money supply, the power to set interest rates, is currently insufficient.

This is a huge admission by Green.

Absolutely huge!

What this statement says is that the private banks not the Bank of England create money (some of us knew that already and don't agree with it), and that the Bank of England can only act on the amount of money created by the private banks in the previous months.

But how many times has Green made this suggestion?

Green, if it is THE Green from HSBC, is Honorary Chairman of the British Bankers Association. To make a suggestion such as to transfer the God-like power to create money from the banks to the Bank of England would I assume require some support from within the BBA. If that is the case then what does that suggest?

It suggests that for now, because they have used up their credit creating powers and what bailouts they have received are nowhere near enough to have any effect on dragging the economy out of the shithole the banks threw us into in the first place, the banks are happy to give that power (which ultimately is our power) back to us so that we in the form of the Bank of England begin lending and take any hits that occur and as soon as the economy is back to health the banks and their newspaper gimps will be crying, "right, we want that power to create money again so we can screw the british taxpayers again and again and again and laugh all the way to the Cayman Islands (which will still be on the grey list in 20 years time)".

1. yes, give the power to create money for the economy to the Bank of England or a similar organization but only after the BoE has been disinfected of the creeps who let the financial crisis evolve into what it has become and they have been replaced by men and women good and true with the best interests of the British people not the City banks at heart, who have either been elected by, or appointed by a committee elected by, the British people.
2. begin lending for many massive infrastructure improvements, ditch Trident and the ID card system.
3. keep that power in the hands of the British people and not give it up to the reckless, greedy gambling banks as soon as we realise what such a system can do and how the current system is ridiculoulsy unfair and plain stupid.