Godfrey Bloom

I listened carefully to Ed Milliband’s dissertation on banking. I learned much, he confirmed without any doubt, he does not understand what has gone wrong with banking. No more of course than the coalition government. The collapse has been caused by the fractional reserve banking system where banks can lend money which does not exist on a mammoth scale to fuel asset bubbles doomed to bust. A central bank is basically an arm of government which encourages this behaviour. When the money eventually runs out, central banks, at the behest of the Treasury, electronically print yet more money, compounding the problem even more. This is nothing to do with codes of conduct, numbers of branches, number of banks, failed regulation, bonuses or meaningless buzz words like ‘stewardship banking’.

The whole concept is rancid and doomed to failure. Government is part of the problem not the solution. Interesting and sad none of the journalists who asked questions after Milliband’s speech even knew what questions to ask.