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A Policy Recommendation for Wealth Creation in the Commonwealth of Nations

The Forum for Stable Currencies has been meeting at the House of Lords since 1998 to debate not only problems but also solutions on a monetary, economic and financial level. In that process, a submission was made to the Select Committee on the Monetary Policy Committee of the Bank of England and a number of its meetings were attended.

Since then the Select Committee has changed its name and remit to Economic Affairs and has begun an Inquiry into the Global Economy. Our submission of evidence this time makes two key recommendations:

1. Keep Sterling parallel to Euro in the same way as the Ecu existed in parallel to European currencies but for the benefit of the Commonwealth of Nations

2. Issue Sterling by the State and not banks as interest-free M0.

 

In the Islamic context, usury, the practice of lending money at interest, is a capital sin. Interest-free principles are applied by

banks lending money for equity rather than interest

banks providing interest-free loans but charging for administrative costs and services.

Malaysia's experience shows

Obedience to IMF prescriptions does not work in promoting growth in developing economies.
A government can swallow its hard medicine to the last drop and continue to sink.

It is possible for a government acting on its own to defy the Washington Consensus over prudent management of its economy without collapsing. By so doing it can win their respect, even if reluctant.

Fixed exchange rates can constitute an incentive to investors who consider a fixed rate reduces risk and make planning easier.

A national economy can be grown from within, both in terms of its economic base and in terms of its capital growth.

In the same vein, Britain should not follow the American way of going global with dollars but follow her tradition of the British Empire of trading - but issue Stable Sterling interest-free as a Third Way.

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