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Michael Meacher MP - on Money Creation (part 1 of 3)

3,598 views · Published 27 January 2012 · 9:41 · Indexed 30 September 2026

Channel: Positive Money UK · 2012 · Education

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Michael Meacher MP, the Labour MP for Oldham West & Royton, is answering 6 questions:

1. What is the state of affairs in the national economy?
2. What are the causes and how far are the banks responsible?
3. How did the politicians let this happen?
4. How did the banks respond to the changes made?
5. So why have the politicians done so little about it?
6. What can be done?

In this part:

1. What is the state of affairs in the national economy?

Manufacturing is being hollowed out. There is soaring corporate pay which is not justified because there is no concurrent improvement in productivity or innovation. Research and development is lower than in 1981, we have a financial crash, which "started in the City of London just as much as it started in Wall Street", and it may get worse.

2. What are the causes and how far are the banks responsible?

The banks are a primary cause -- through the proliferation of financial derivatives and securitisation. Through all these techniques they have evaded public control and used it to promote their own interest, not the national interest. They have been generators of unsustainable asset bubbles, and have seized control of the money supply. They have used their generation of the money supply in order to promote a property boom, and foreign speculation, whilst allocating a mere 8% to productive investment. This means that 11/12ths does not go into productive investment.

 "I'm not anti-bank, but they have enormous power, and need to be brought to heel."

3. How did the politicians let this happen?

They didn't allow it, they facilitated it.

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