The Money Bomb (Government Debt)

171 Pages·1983·4.727 MB·English

by  STUART, James Gibb

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THE MONEY BOMB
TI-IE
James Gibb Stuart
W lliam Maclellan (Embryo) L d
FirstEditionPublishedMarch1983
SecondEditionJulyI984
CopyrightJamesGibbStuartI983
ISBN853352593(Paperback)
PublishedbyWilliamMaclellan(Embryo)Limited
268BathStreet,GlasgowG24.!R
ProducedbyEricMoore&Co.,
I2] MinervaStreet,GlasgowG3BLE
CoverdesignedbyEricMoore&Co.
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CONTENTS
INTRODUCTION
CHAPTER I
1] Thecashthatjinglesinyourpocket
Thediminishingpound
ThebulkoftheMoneyStock
Monetizingyourassets
Howthevolumeofmoneyincreases
A(cid:191)nancialsystemthat’sfailingthenation
iiéii O\Ll't-hb-)l\Jv—I
CHAPTER 11
1' TheaffidavitsofMonetarism
T Thenewconservatism
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9 Theinterestratelever
10 Sparkingoffalendingboom
11 Theprivatesectorgetsthemessage
12 Counter-inflationinarecession
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CHAPTER III
1] 13 Theboom-and-bustsyndrome
14 Crisisofover-production
15 Askingmorepertinentquestions
16 ScottishbanksandtheOptionClause
17 Thesocialconsequencesofrestrictingcredit
18 Distraughtwivesandhungrybaims
19 PreoccupiedwiththeSymbolofWealth
20 Moderndaycomparisons
21 Whynotjuststopin(cid:192)ation?
éééééééé
CHAPTER IV
1| 22 Theoriginsofsocialism
1| 23 Perfectsystemthatwaslongincoming
24 Socialistswhoreadtheirbibles
25 Collectivistidealofthefuture
26 AdaptingtheMixedEconomy
27 Thepublicsectordragsitsfeet
28 TouchingonGovernment Debt
iiééé
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CHAPTER V
1' 29 ThecastawaysofSalvationIsland
30 Anangelfromtheclouds
31 Decidingthefirstnoteissue
32 Aquestionofinterest
33 Mr. Oliversolvesaproblem
34 TaxingtheIsland'sprosperity
35 Tomuncoversavitalsecret
36 Takingbacktheirassets
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CHAPTER VI
ll 37 Thetruthaboutfirst-timemoney
ll 38 Soundbanking
39 Expansionwithoutpublicdebt
40 Tryingitoutintherealworld
41 StagnationanddebtintheChannelIslands
42 Raisingalocalcurrency
43 NosuchplaceasGuernsey?
44 “Theurgencyofgreatoccasions”
45 Exercisingfiscalresponsibility
iééiiéi
CHAPTER VII
ll 46 FormationoftheBankofEngland
47 TheLenderofLastResort
48 BeginningsoftheNationalDebt
49 PayinginterestintotheThirdMillennium
50 “Moneyweowetoourselves”
51 Governmentswithoutmoney
52 A(cid:191)gurethatkeepsonescalating
iéééii
CHAPTER VIII
ll 53 Toomuchmoneychasingtoofewgoods
54 Thein(cid:192)ationpsychosis
55 Peoplewhogainfromthepricespiral?
56 Devaluingthepenceinyourpocket
57 GrowthversuscontinuedGovemmentborrowing
58 Thetruecauseofprimaryin(cid:192)ation
59 ClobberingthetradersintheMarketPlace
60 Themonopolymoneyofthefuture
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CHAPTER IX
ll 61 VanishingprofitsattheE.G.B.
1| 62 IdentifyingtheBlackEconomy
63 TaxCreditandthePovertyTrap
64 EludingtheInlandRevenue
65 Taxingthenaturalresources
66 TheDinosaurinthebasement
éiéé
CHAPTER X
ll 67 TheFourPrinciplesofBishopBerkeley
1| 68 BenjaminFranklinandColonialScrip
69 ScotlandandGuernsey
70 Seeingself-helpasavirtue
71 Localexpenditurecuts
72 Capitalism’sAchilles’Heel
73 TheRatesVoucherscheme
ééééé
CHAPTER XI
1| 74 Achoicebetweenhospitalsandarmaments?
75 TheMoneyBombandtheLand(cid:191)tforHeroes
76 TheFalklandsWar,—Britainrecovershernerve
77 CompensatingforthecostofTrident
78 Liveslostthroughdefencecuts
79 Guns,Butter,—andtheDinosauragain
80 IslandsthatWhitehallneglected
81 Thetrueevilsofcolonialism
82 Menofvisioninacommoncause
éééééééé
CHAPTER XII
1| 83 PostwarrevivalofGermanyandJapan
1| 84 Thathyper-in(cid:192)ationintheWeimarRepublic
85 Aneconomystartingwithoutpublicdebt
86 EndoftheMiracle
éé
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CHAPTER XIII
ll 87 Fromdreamintonightmare
88 Lincoln’sgreenbacks
89 Landofthe AlmightyDollar
90 Money,—MasterorServant?
91 OnlyinAmerica
92 FoundingoftheFederalReserveBank
93 Governmentborrowing—Taxation—In(cid:192)ation
94 SparkingofftheGreatDepression
95 Speculation,—andthedistortionofrealvalues
96 Wheredoesallthemoneygo?
éééiééééi
CHAPTER XIV
‘ll 97 Aninsatiabledemandforgrowth
98 ReplenishingtheCookieJar
99 Machinein needofmaintenance
100Creditgoesforexport
101 TeaandsympathyforthePoles
102 The$23billionthatquietlydisappeared
103 TechnologyforRussia'sgaspipeline
104 Whogetsthebestofthebargain?
105 Exchangingcapitalgoodsforelectronicmoney
106 Millionscreatedwithoutsweatoreffort
107 Thepowerofthepurse
108 BankexpansionismthatdefeatsGovernmentpolicy
109 Pinpointingafallacy
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CHAPTER XV
1| 110 Stipulatingtheconditions
ll 111 HowtheTreasury(cid:191)nancesitscurrencyissues
112 TheGovemment’sdebt-freerevenue
113 ComingtotheProposal
114 Fundingthedebtinterest
115 Ithastobecreatedinanycase
116 Enumeratingthebenefits
117 LivingwithaTaboo
iééééé
BIBLIOGRAPHY
INDEX OF NAMES AND REFERENCES
APPENDIX
ConvertibleCurrencyP.Q.Collins
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INTRODUCTION
TotheSecondEdition
In 1979 a British Conservative Government led by Mrs.
Margaret Thatcher set about curing in(cid:192)ation and industrial
stagnation by a monetarist policy which aimed at controlling
moneysupplyandcommercialactivitythroughleverageoninterest
rates. As a result the Minimum Lending Rate was held at an
unprecedented 17% for over a twelvemonth, and Britain's
productive industry was paying 20% for its borrowed money.
Moneysupplyandin(cid:192)ationwerefinallybroughtundercontrol,but
the social cost was high in terms of factory closures and lost
employment.
Meanwhile in the United States President Ronald Regan.
racing against time to build up the Free World’s defences against
the persistent encroachments ofSoviet Communism, found that it
was only politically and economically acceptable to do so by
running up enormous budget deficits which also rocketed interest
ratesandforcedthewholeeconomyintorecession.
Over this same period a bevy of East European and
developing countries, heavily borrowed from the international
bankers, threatened to default on the crippling debts which they
could not hope to service without further borrowing. Commonly
known as the Third World Debt Crisis, this unstable situation.
which showed every sign of rumbling on throughout the eighties,
periodically rocked the West's financial markets as it caused
upheavalswithinthebankingsystem.
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