Monday, June 06, 2011

Coalition needs Plan CC

'The banks are not going out for business' says Vince Cable (Business Secretary in UK's coalition government) in a recent New Statesman article by Jason Cowley (30 May 2011). VC, quoting JK Galbraith  says that there are two great financial motors that can grow total spending power: 1. Governments, through public deficits and 2. Banks, through private loans.
But No:1 is being reduced and this means less spending to produce growth.  No: 2 doesn't work with small businesses in particular. For one reason, banks want good collateral and with house prices weak that won't work. Also their system is not geared up for lending to local businesses - see the Werner video on Banking for the Big Society which explains this.

Perhaps VC is unaware / his adviser's don't know,  a third way. It is clearly explained in a new short video interview with Prof Richard Werner, International Banking academic. The title is: Debt Free and Interest Free Money. Just posted on YouTube

Top Tories reject clamour for plan B says the FT today (6 June 2011). What we actually need is Plan CC (watch the video:  CC = Credit Creation). 

Summary - No:1  Not effective.  No:2. Not effective.  That leaves No:3. CC.  When will they start? 

posted by Charles Bazlinton. Link to: signed copies of The Free Lunch - Fairness with Freedom

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