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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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