House of Commons
TAXING THE PROFITS OF CREDIT CREATION
Tabled 20 May 2008
This is an amendment to an existing motion
Motion originally tabled by Mr Austin Mitchell on 29 April 2008
This is amendment number 1
"leave out `building society' and insert `bank'."
Original Motion Text
That this House considers that in the light of the nationalisation of one failing buiding society, the help given to markets by the Bank of England's boost to interbank liquidity and the huge benefit given to the financial sector by the Bank's proposal to take on up to £50 billion of unsaleable special purpose vehicles of bundled debt to help the banks, building societies and lending institutions escape the consequences of their own follies is disproportionate, and should be now balanced by ensuring that the financial institutions which have benefited so substantially from the effective privatisation of the great bulk of credit creation by their power to create money via credit cards, bank accounts, mortgages, loans, special purpose vehicles and other financial instruments thus ensuring that the seigniorage on money creation which once came to the people on public credit created by the minting and printing of money, now goes into bank profits are taxed on the credit they create to compensate the taxpayer for the fact that the 97 per cent. of credit creation arrogated by the private sector to use and abuse for its own profit and purposes, rather than the benefit of the public, has been so badly misused and has led to yet another financial crisis of the type financial flesh is all too frequently heir to.