Debating Sound Money

steve

Hayek MoneyIn the commons chamber right now Steve Baker MP is proposing the denationalisation of money. Together with colleagues spanning four parties – Michael Meacher (Lab), Caroline Lucas (Green), Douglas Carswell (UKIP) and David Davis (Con) – he has secured a debate on Money Creation and Society. It is a complicated and important subject.

The Cobden Centre, which campaigns for sound money, explains: we have a system of paper or “fiat” money: it exists due to legal mandate as opposed to being a physical commodity like gold. Reserves, notes and coins are created by the state but claims on money are created by the banks when they lend. Most of the money we have was created by banks lending.

This video from Dominic Frisby is a good primer on the issue:

As things are now, recurrent financial crises are systemically built into the global monetary order… 

See also: The Death and Rebirth of Sound Money

Defusing the Debt Timebomb

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Government borrowing is currently running 10% higher than last year – exacerbating the already parlous state of the UK’s public finances.

This week, as part of its 2020 Vision initiative, the Institute of Economic Affairs launched its new report, Defusing the Debt Timebomb.    The think tank says spending restraint, pro-growth reforms and fundamental changes to pensions and healthcare provision are urgently needed to tackle this colossal problem.  Download the report for free here.

And a new short film from ieaTV Danny and the Debt Mountain shows why this story is unlikely to have a happy ending.  Watch it here.

Wonk Watch: Loss of Faith But It’s No Talent PX-odus

Nick Faith is leaving his role as comms chief at the shrinking Policy Exchange to set up a new wonk shop with former Cameron adviser turned PX propeller head Sean Worth. It isn’t another talent exodus however, Faith and Worth’s Westminster Policy Institute will still work closely with their previous employer.

Will the last Cameroon to leave please turn off the light?

Miliband Slammed for “Shameful”, “Disgraceful” Attack on Freud …But Welfare Minister Offers Grovelling Apology

Interesting that Labour’s Anne Begg admitted on Sky News that she had not been told the context of Lord Freud’s comments by party spinners, heavily caveating her criticism accordingly. The Adam Smith Institute have come out in support of Freud, condemning Labour for misrepresenting what he said:

“Lord Freud has been shamefully mistreated by Ed Miliband. His point was that the market value of some people’s wages is below the minimum wage. This is often true of the severely disabled and can have appalling consequences for their self-esteem and quality of life. Fixing this problem was the justification for Remploy, a government-funded firm that gave jobs to disabled people who could not find work elsewhere.

To point out that someone’s market value is less than minimum wage has nothing to do with their moral value as human beings. Freud’s point was that we should help people in this situation by allowing them to find jobs paying below the minimum wage and topping up their pay directly to make up the difference.

Even if you don’t agree with this method, it is motivated by compassion for the disabled and an understanding of the unpleasant side-effects of our minimum wage laws. Freud’s only crime was to speak bluntly: it is disgraceful to use his words against him in the way Miliband has.”

Not like a spinner to take something out of context…

UPDATE: Freud mea culpa:

“I would like to offer a full and unreserved apology. I was foolish to accept the premise of the question. To be clear, all disabled people should be paid at least the minimum wage, without exception, and I accept that it is offensive to suggest anything else.

I care passionately about disabled people…. I am profoundly sorry for any offence I have caused to any disabled people.”

Finding NiMo Another Special Adviser

Nicky Morgan hid in her office while she had the three SpAds she inherited from Michael Gove sacked back in July. Now she has finished replacing them. Guido is told Morgan has hired up Holly-Lee Davis from the Centre for Social Justice – which is becoming the government holding pen once embodied by PX. The LSE-educated brainbox who also works with an “initiative aimed at promoting peace amongst school-aged children in the Middle East”. Davis joins gay rights activist Luke Tryl and Lynton Crosby’s former assistant Chris Wilkins at DfE. She should be able to spot a Trojan Horse plot a mile off…

Through the Roof

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Property prices and the soaring cost of living are never far from the headlines – and never far from politicians’ lips.

This conference season, all four main parties have discussed ways of cutting the UK’s cost of living. Tax cuts, price freezes and increasing the minimum wage have all been put forward.

But in this new short film from the Institute of Economic Affairs, Director General Mark Littlewood argues that suffocating planning restrictions have the most profound effect on housing costs in the UK.

Watch more videos from ieaTV.

I Don’t See Much Sin… Just Taxes

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Have you seen “Sin Taxes”? This stylish video short – from the Institute of Economic Affairs – shows how the poor are hit hardest by sin taxes. It puts forward proposals that would ease that burden – and boost the economy at the same time. It’s the most watched video of the year on ieaTV – the think tank’s online channel. Find out more here.

Sin Taxes Increase Inequality
Disproportionately Harm the Poor

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You may have seen Sin City 2, but have you seen Sin Taxes – a stylish new video short from the Institute of Economic Affairs?  It’s the poor who continue to be hardest hit by sin taxes – and here the iea puts forward proposals that would ease that burden.

SpAd Movements: Truss Takes PX’s Porter to Defra

Liz Truss has landed a big name from wonk world as her new media SpAd. Guido understands Policy Exchange brainbox Ruth Porter will be shopping for a new pair of wellies as she heads off to Defra. It’s a strong […]

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Follow the JP Morgan Money

Ed Miliband has all but outsourced the writing of next year’s manifesto to ‘charity’ think-tank IPPR, the Labour wonkshop recently referred to the Charity Commission for breaching impartiality rules.  They don’t really like to shout about who funds their work, […]

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IPPR Roll Call of Labour Cronies

Political Scrapbook tried their hardest to give the Policy Exchange think tank a slap earlier, finding only a pitiful number of connected people in comparison to Labour wonkshop IPPR. Safe to say the list of Labour-linked acolytes over there is […]

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LISTEN: Dead Hand Ed
Candid Cruddas Concedes Central Cynicism to Compass

DEAD-HAND-ED[…]

+ READ MORE +



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Quote of the Day

Ken Clarke tells the Ben Fellows trial:

“The idea that I would go strolling off in order to grope a man in an office is highly unlikely.”

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