In 1997, the Labour government with Gordon Brown as Chancellor of the Exchequer made the Bank of England independent

 

Dear Helen Hayes MP,

What many politicians don't seem to undertand is that:

1) The Bank of England was made an independent organization. It was Gordon Brown MP as Chancellor of the Exchequer that made the Bank of England independent in 1997.

2) The moneys lent by banks don't belong to banks. Banks borrow money to lend. The banks gave people huge amounts of money for people to buy property and must return the said moneys when people pay back loans and pay interest to those they borrowed money from.

Because of this, when people started to default loans, Gordon Brown had to prop up banks so that the financial system would not collapse.

Was Rachel Reed an MP under Tony Blair? Does she know how tha banking system works? If she was an MP then and if she knows how the banking system works, she shoudn't come up with the load of nonsense she has come up about 'banks helping people'. If banks have to borrow money - provided they can come up and borrow money - they will have to borrow money at market values, thus increasing their vulnerability and cutting down their margins. Does the Labour Party want the banking system to collapse?

When banks where capitalized under Labour, there were new rules implemented by :Labour about reserves that had to keep in order to protect peoples' accounts. The division was made between conventional banking and investment banking. Is Rachel Reed suggesting, that safety rules imposed then by the Labour government have to be abandoned?

Is the Labour Party if in government ready to face a massive financial crisis without having reserves to bail out the financial system? I see an unavoidable financial crisis that will lead to a tsunami of strikes in 2024 and beyond. 

 Best regards

Karl Hohenstauffen