“Stronger Economy Fairer Society” was the strap-line that took us into the devastating General Election of 2015. Some members wanted a fairer society that would support a stronger economy but regardless of which way we place these adjectives and nouns, it’s still unachievable without liberating the UK economy from our five major banks.
As long as our five big banks have the power to create money when they make loans, and lend it back to us at a profit, it is very difficult to see how our economy can achieve anything other than consolidating wealth into the hands of a few. The Bank of England (BoE) and business generally is having less and less influence on how our economy expands and grows. Not only do we need to challenge this ‘status quo’, we need to radically overhaul the system and liberate the banking monopoly so that our economy functions to support our marketplace.
Properties in London have been sliced and diced according to an economic system that is essentially controlled by five big banks and this has overly inflated prices – driving up rents and sales. Homes for families are now filled with rooms for rent that are advertised as flats. We have less than 20 square meters for a bed, cooking and toilet facilities and are charged £800 per month rent. Generation rent (typically graduate students), are unable to save to buy a home due to ‘market rents’ sucking every penny from their incomes.
In the UK we have essentially five banks running 97% of new money in the economy and they continue to throw 40% of that created money at our housing market. When that created bubble bursts – we bail them out! The QE that was washed into the economy by the BoE propped up the financial markets and expanded the economy not on tangible commodities that are bought and used like bikes or solar panels for energy, but on financial tools that only a few could trade.
Five banks shrinking and expanding our economy for enormous profits makes a mockery of our trust and commitment to markets. It sucks the heart out of our ‘working’ souls and the money from our pockets. It steals our dreams of a home and family. It is an injustice to every working person trading their labour for an income. It is a monopoly, and we are crying for freedom.
That one area of our economy is in the hands of so few banks, causing misery to so many of us, is simply a monopoly begging the Liberal Democrats for liberation. Debating why only 78 Board Members control the wealth of a country needs you!
I will be speaking at a fringe meting discussing these issues with Positive Money at the Social Liberal Forum Conference, on 4 July 2015 at Amnesty International, in London. You can register for that event here.
* Teena Lashmore is the Vice Chair London Region Liberal Democrats and writes in a personal capacity.
