Reform: 4-Pillars of the Liberal Awakening

Economic Reform

Capitalism - Banking & Finance - Taxation - Government Borrowing - Free Trade & Competition


  1. The taxpayer will NEVER again underwrite banks.
  2. The banking and financial sector to operate within the same rules as all other capitalist businesses.
  3. ALL the financial sector will operate under the same moral hazard as other businesses, and allowed to go into liquidation if they fail.
  4. Retail Banking:
    1. To avoid ever again the too large to fail situation, retail banks will be broken up into very small local units consisting of town or regional lending banks.
    2. Their sole function will be to look after depositors money, lend to individuals, and invest to support industry.
    3. End up having thousands of independent banks.
    4. Investors (including members of the public) should spread their risk between banks to avoid the possibility of loss. When investors know that they are not guaranteed to get their deposits back, then they will be more careful about spreading their risk.
  5. Investment Banking:
    1. Investment Banks and all other non-deposit financial operations will be completely separated from the retail sector.
    2. All these financial institutions will pay into an Insurance Levy that will underwrite any future failure.
    3. Riskier financial organisations such as Hedge Funds and investment banks will be be prevented from using money from traditional banks in any socially useless money trading schemes.
    4. The city of London financial sector to be re-modeled as having prime duty to invest in UK industry, business, and Education/Research sector.
  6. Central Banking:
    1. Initially reduce the role of Central Banks solely to Lender of Last Resort.
    2. Interest rate decisions to be determined less by the authorities and more by the market (treasury bill rates etc)..
    3. Long term discussion about the possibilities of abolishing all central banks.
    4. Money Supply targets to be abolished.
  7. Stock Markets
    1. Stock Markets too are NOT Capitalist They are, on the contrary, like the banks bastions of socialism propped up by governments.
    2. Governments do everything possible to boost asset prices, and when overstimulation leads to bubbles bursting it is all hands to the pump to prevent them from falling too far.
    3. Governments across the world rush to protect investors through interest rate manipulation or so-called Quantative Easing.
    4. We will ensure that Stock Markets or speculators are no longer backed by governments.

Valid XHTML :: Valid CSS: :: Powered by WikkaWiki