Douglas Carswell (www.douglascarswell.com), a member of the British parliament, author and blogger talks to GoldMoney’s Dominic Frisby about his Banking Reform Bill, which aims to limit the damage that can be caused by fractional reserve lending. Though he was an early supporter of Britain’s coalition government, Carswell has reluctantly concluded that — economically speaking — little has changed from the previous Labour administration. He points out the many fallacies in government and Bank of England policy, such as the idea that low interest rates will increase the supply of credit, or that problems caused by overconsumption can be cured with encouraging even more consumption by easing credit conditions. All this will culminate, in Carswell’s view, in a currency crisis. Politicians will only act when they feel the heat, despite the fact that under Britain’s current system, politicians have little influence over monetary policy. Carswell is therefore trying to establish a new intellectual framework for the time after the current system has failed. His alternative is based on Austrian School principles. He emphasises how the internet is reshaping people’s conceptions of the role of government. Carswell’s Banking Reform Bill would allow people to choose whether or not they would like to take ownership of their deposit at a bank or not. This would limit banks’ ability to practise fractional reserve lending, and therefore hopefully contain the worst credit excess …Video Rating: 4 / 5 Douglas Carswell on banking reform
Douglas Carswell (www.douglascarswell.com), a member of the British parliament, author and blogger talks to GoldMoney’s Dominic Frisby about his Banking Reform Bill, which aims to limit the damage that can be caused by fractional reserve lending. Though he was an early supporter of Britain’s coalition government, Carswell has reluctantly concluded that — economically speaking — little has changed from the previous Labour administration. He points out the many fallacies in government and Bank of England policy, such as the idea that low interest rates will increase the supply of credit, or that problems caused by overconsumption can be cured with encouraging even more consumption by easing credit conditions. All this will culminate, in Carswell’s view, in a currency crisis. Politicians will only act when they feel the heat, despite the fact that under Britain’s current system, politicians have little influence over monetary policy. Carswell is therefore trying to establish a new intellectual framework for the time after the current system has failed. His alternative is based on Austrian School principles. He emphasises how the internet is reshaping people’s conceptions of the role of government. Carswell’s Banking Reform Bill would allow people to choose whether or not they would like to take ownership of their deposit at a bank or not. This would limit banks’ ability to practise fractional reserve lending, and therefore hopefully contain the worst credit excess …Video Rating: 4 / 5
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