Friday, 8 November 2019

War Chests

I am wearing a poppy as I type this. But I have never sent anyone to war and then expected private charity to look after them once they had come back.

The Royal British Legion ought to be a purely social organisation. It did not send people to war, and neither it nor the astounding array of other military charities ought to be responsible for the care of veterans. Morally, that responsibility lies with the State.

Although the House of Commons would now bring down any Government that went to war without its consent, the fact that that has always been possible is an important illustration of the fact that the State's money derives neither from taxation nor from borrowing. If it did, then wars would always have required parliamentary approval.

But in reality a sovereign state with its own free floating fiat currency has as much of that currency as it chooses to issue to itself. It literally cannot run out of money. All wars have always been fought and always will be. Both fiscal means and monetary means exist to control inflation, and to encourage certain forms of behaviour while discouraging others.

What those forms of behaviour are to be, and how much inflation is to tolerated or sometimes even encouraged, are the stuff of political choice, so that both fiscal policy and monetary policy must be subject to democratic political control. But most politicians in Britain today either have no understanding of any of this, or they pretend not to have.

Another hung Parliament is coming, however, and we need our people to hold the balance of power in it. After nearly 30 years of suggestion, speculation, and even a sort of preparation, I am standing for Parliament here at North West Durham.

The crowdfunding page is here, and buy the book here. Please email Very many thanks.

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