by shifting to loans with oversight, confidence, and long-term human priorities via STWR

1. The money supply is inherently unstable and pro-cyclical. The supply of credit depends fundamentally on the confidence of banks, and not on interest rates or other policy levers influenced by public institutions.  

2. Over many years of consolidation, deregulation and internationalisation, our banks have become increasingly structured to favour creating new money for property and financial speculation where then can make short term returns, rather than small businesses and manufacturing which require longer term relationship banking. As shown in the graph below, the vast majority of bank lending in the UK is for non-productive activity:

3. There is no strategic regulatory guidance, or democratic oversight, to ensure that commercial bank credit supports productive investment over speculation, in contrast to previous practice in the UK and widespread current practice among our industrial competitors. As recently as the 1960s, the government and Central Bank suppressed speculative credit creation and stimulated productive investment by the banking sector. 

4. Quantitative easing (QE), as currently practised, is ineffective in stimulating new employment, investment and GDP growth. QE involves the Central Bank, which like the commercial banks can also create money, pumping cash into the banks to help them rebuild their balance sheets and recommence lending. But banks are choosing to sit on the money because they still lack confidence in the economy growing and thus continue to contract their lending.