Relief begins at Home
invitation comes to you because of your support for EDM 736 on Debt
Relief and/or EDM 877 on Debt and
Credit Lending. It is hoped
that you will want to take time to attend some of the next three meetings of a
Parliamentary supported group, the Forum
for Stable Currencies whose current programme is entitled Debt
Relief begins at Home.
Joseph Stiglitz, former chief economist of the World Bank, recently gave
evidence on globalisation to the Select
Committee on Economic Affairs of the House of Lords and mentioned that
African states would borrow money at 18 – 20% and lend it at 2% to establish
reserves. He also stated that
countries that received loans have not increased their economic growth but the
influence of their lenders. Furthermore,
he elaborated on the influence of the US Treasury over the IMF, the World Bank
and the WTO.
Rowbotham, former Secretary of the Christian
Council for Monetary Justice, describes in his book Goodbye America how Third World Debt arises.
His views are endorsed by the Forum
for Stable Currencies which represents over 300 Parliamentarians and
citizens who have attended meetings for more than three years.
The Forum represents also a growing international network of self-help
initiatives and NGOs some of which are mentioned on the back of the enclosed
political dialogue depends on the precise definition of words.
Aristotle once said that money is a medium
of exchange and not the mother of
interest. However, every
Government inherits a National Debt while failing in the primary fiscal
responsibility of creating a sufficient medium of exchange free from debt and
putting it into circulation through public expenditure or other appropriate
banks have secured a virtual monopoly in the creation of credit for which they
charge interest. Under their system
of fractional reserve, banks lend out much more than they have, often up to ten
times more, and even much more through hedge funding.
money is lent to Third World countries, it is often used to buy arms that are
produced in the North. At the end
of World War II, Cambridge economist John Maynard Keynes led the British
delegation to the international Bretton Woods agreement where the details of the
American ‘White Plan’ were hammered out: fixed exchange rates with the
Dollar and the Dollar matched by gold. Keynes
said that if there is to be Free Trade, there must be a fair balance of trade
between participating countries. He was opposed to some nations becoming ‘creditors’
(exporting more than they import) and others ‘debtors’ through their trade
accounts. His Clearing Union
‘Bancor’ sought to foster trade balances by a range of fiscal measures.
If his proposal had been accepted, there would be no Third World Debt.
at Bretton Woods, Keynes was overridden by the USA. The notion she might be under an obligation to expend her
surplus trade revenues into other economies was completely unacceptable, and the
IMF and World Bank were founded.
cancel Third World Debts, whilst important and appropriate, does not go to the
root of money being created by banks and lent at interest to governments,
businesses and individuals. Nor
does it address the coercive influence of a limited number of international
players in the market place.
discussion of the Tobin Tax surely is a sign that the time has come to consider
alternative approaches in financial relations on the international and national
scene. It is hoped therefore that
you will be able to accept this invitation to attend Forum for Stable Currencies meetings to discover the new ideas which
are gaining more and more momentum and recognition.
forward to seeing you at one of our next meetings,
Ahmed of Rotherham