OVERT MONETARY FINANCING or 'Helicopter Money' Policies - Lord Turner is waking up?

Anatole Kaletsky writes about the 46-page speech that Lord Turner, Chairman of Britain’s Financial Services Authority gave at the Cass Business School on 6th February 2013.

Positive Money writes Adair Turner tumbles to the merits of a Positive Money idea.

In 2008, I had been advised by a human rights lawyer to ‘go for Parliamentary scrutiny via the Treasury Select Committee‘. Since the Treasury Select Committee had just announced their inquiry into climate change, we submitted Green Credit for Green Purposes.

Since 2002, Austin Mitchell MP has been tabling Early Day Motions to address exactly this: ‘overt monetary financing’ – but under a different label: public credit.

You can really tell from this speech how “the Religion of Money” has won over the Lost Science of Money, as men struggle with: whom to follow and whether to be for or against the ‘current consent’:-

• a virtually surefire method of stimulating economy activity exists today and that politicians and central bankers can no longer treat it as taboo: ‘newly created money should be handed out to the citizens or governments;
• distribute free money to end deep recessions;
• quantitative easing for the people;
• overt monetary financing (OMF) or “helicopter money” as ‘permanent monetisation of government debt and ‘extreme option’ in ‘extreme circumstances’.

Strangely, Lord Turner associates ‘inflationary risks’ and ‘printing money’ with Germany: the Bundesbank, Goethe’s Faust and the devil itself: Mephistopheles.

Money is the fiat, the creation of the public authority. It can therefore be created in limitless nominal amounts. But if created in excessive amounts, it creates harmful inflation.The ability of governments to create money is a potential poison and we rightly seek to limit it within tight disciplines, with independent central banks, self-denying ordinances and clear inflation rate targets.

“The theory of money and of debt” is most offensive to my German mathematical mind. I better tell him, it’s not rocket science after all. It’s just about knowing and understanding what ‘money’ is rather than believing that ‘Credit’ is the only ‘real’ money…!

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• The Money Cranks Are Loose (financialsurvivalnetwork.com)
• The Currency War Is Not New: It’s Merely Escalating (safehaven.com)
• Time To Drop Money From Helicopters? – OpEd (albanytribune.com)
• Rethinking Money: How New Currencies Turn Scarcity into Prosperity by Bernard Lietaer and Jacquie Dunne – New Book Available in February 2013 (prweb.com)
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