Here is a copy of the letter I have sent the new Prime Minister - Liz Truss:
The cost-of-living crisis and many other economic problems can be solved by a simple but difficult to achieve solution. This is to change the financial system so that the Government issues its own currency – say the UK pound (UKP). It will need to create its own bank and enact a law that makes UKP legal tender, along other enabling laws such as the conversion of the existing GBPs into UKPs at a one for one exchange rate. It can create UKPs as fiat currency. These could be used to repay the national debt, pay for government projects such as reducing energy bills etc. It could also cancel all taxes as its expenditure can be met by creating UKP rather than borrowing GBPs from the Bank of England. However, it may choose to enact a total economic levy say at 1% on all transactions that are made in GBPs. Of course there are massive vested interests in the currency system, so this change will need massive political will.
United Kingdom Bank
This proposal requires a new bank to be created this is owned by the Government as a collective (ie the current members of parliament) and not a cartel of bankers (ie the current Bank of England). This bank could be called United Kingdom Bank.
It will issue the UKPs. The amount of UKPs that the bank can issue is effectively unlimited
Total Economic Activity Levy
Total economic activity levy or TEAL, is a way of collecting revenue for the Government by charging a fee or levy on all transactions coming in or going out of a bank account. Due to the scale of transaction being made by interbank transactions, a low percentage such as 1% is all that would be needed to generate enough revenue for the Government (along with an optional property tax) to pay for all of Government expenditure.
Comments