Sod the European Union and loss of sovereignty. News arrives this morning that two state owned investment funds - The China Development Bank and Temasek, the investment arm of the Singaporean government, have between them taken a 10% plus stake in Barclays Bank.
Now, there's nothing new, or inherently threatening, about overseas money investing in UK companies, but in this case there are two issues.
First, these funds (as with the Qatari bid for Sainsbury's last week) are themselves so wealthy because of state protectionism. China in particular is not operating on the same economic "rules" as most of the west, what with pegged exchange rates and state control of assets generating this cash.
Second, Barclays is a bank, and as such in an incredibly privileged position. It is part of a cartel of a few organisations that effectively have the ability to create our money. A few choice quotes should suffice to show how awkward this could be...
Reginald McKenna, Liberal Chancellor of the Exchequer in 1915 and later Chairman of the Midland Bank, at the time the world's largest bank:
"I am afraid that ordinary citizens will not like to be told that the banks can, and do, create and destroy money. And they who control the credit of the nation direct the policy of governments, and hold in the hollow of their hands the destiny of the people."
Meyer Amschel Rothschild:
"Give me control of a nation's money and I care not who makes the laws."
Robert Hemphill (a director of the Federal reserve Bank of Atlanta in the 1930s):
"This is a staggering thought. We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon."
Franklin D Roosevelt:
"The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson."
It's not that there should not be overseas investors in our commercial banks and so on. But that our commercial banks should not have the ability to create fiat money on their own initiative but in our name. We must either privatize the money supply or nationalize it - but if we allow other governments to take over the function through acquisition we can forget worrying about losing sovereignty to the EU and other such arguments, we will have handed real sovereignty, through control of our money supply, to foreign governments.
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Technorati Tags: fiat money, monetary reform
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