Paul Carpenter of Bartestree has some interesting questions about our economy and financial systems (From Hereford Times)

Paul Carpenter of Bartestree has some interesting questions about our economy and financial systems

3:40pm Friday 5th March 2010 in

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AS a financial layman I have been pondering for some time now how our economy and financial systems have appeared to fail with the only solution seemingly being to borrow more money to prop up the banks from the Bank of England whilst continuing to reward people working in the banking world with huge bonuses.

What I do not understand is how the financial system that perpetuates debt has been allowed to prevail before, during and no doubt after the current financial crisis as it is often described. Now we are hearing in the media, for example, the choices that local authorities are having to make with regard to cuts to services and the loss of jobs as budgets are being cut by the government. Why has our government given the Bank of England the authority to print money and issue our currency like the Federal Reserve in the USA as a debt to the people of the UK? As I understand it this means that our government must go to the Bank of England, a private central bank, to borrow money to pay for the running of the UK. This borrowing including interest, the national debt, must be paid back to the central bank and can only happen through taxation of the people. Without taxation the debt cannot be repaid? Why?

Why can’t the government take back the ability to print and issue our currency without the need for repayment and interest free from the Bank of England whilst simultaneously wiping out our national debt? Surely this would alleviate the current nonsensical situation that we find ourselves in and lead to a total rethink about how our monetary system works to the benefit of the many and not the few? Maybe get rid of money altogether?

Just a thought.