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The history of the British national debt, which dates back to the establishment of the Bank of England in 1694, offers contemporary policy-makers important lessons for today;
Today in the European Parliament I raised the subject of the Bank of England shareholders.
I sometimes get people writing to me about the Bank of England and the fact that its shareholders enjoy privileged secrecy.
What does that mean? And is it still legal given that the European Union now makes our laws and not our own Parliament? So I made the following speech asking the question. I will be very interested to see what comes back.
Member States are free to legislate on this matter as they see fit . . . it is not problematic that national systems of shareholder identification do not cover all shareholders . . .
. . . who does Britain owe most of its money to? The answer is in the chart above. It shows you who owns UK government bonds (gilts) – everyone from UK households to overseas investors to (most notably) the Bank of England.
The UK government are borrowing every year to pay off the previous year’s shortfall. This borrowing incurs an interest charge, so it cannot be counted as “income”, and every year we are borrowing more to pay off the loans. This is ” Wonga loans” economics.
United Kingdom: Bank of England
Complete List of BANKS Owned or Controlled by the Rothschild Family
. . . do we really need to be paying interest to the Bank of England on the £300 billion+ of gilts that it holds as part of the Quantitative Easing programme? In fact the Bank holds these gilts on behalf of the Treasury anyway, so the Treasury is effectively paying interest to itself on assets that it bought with “free” printed money. Could we decide that this is a waste of time, that we are unlikely to sell these gilts back to the market in any case, and that we may as well just cancel the gilts we bought for the nation?
If it was wrong they’d have to be saying the BofE isn’t actually ours after all. I look forward to that! Anyway, the Tories themselves did something similar back in Thatcher’s day, they had one part of government obligingly write off a debt owed it by another part of government and then held the resulting drop in the National Debt up as example of their fiscal prudence. This was uncovered after FOI requests by one James Gibb Stuart and you can read about it in his book The Money Bomb. So the idea’s not actually new, just kept secret.
originally posted by: Kester
a reply to: ScepticScot
On the surface so it appears.
My experience of the world is that it's half full of lying gob#es and they frequently occupy 'responsible' positions. I suspect profit is being made on this operational accounting exercise.
A reply from Ben Norman, the Deputy Secretary of the Bank, to an enquirer Mr E Danielyan, dated 5 March 2010 explains: BOEN acts as a nominee company to hold securities on behalf of certain customers. It is a private limited company, incorporated in England and Wales in 1977, and is a wholly-owned subsidiary of the Bank. The shareholders are the Bank and John Footman, who holds his share as nominee on behalf of the Bank. The directors are John Footman and Andrew Bailey.(4)
Mr. Clinton Davis The Secretary of State has granted one exemption under Section 27(9) of the Companies Act 1976 in favour of Bank of England Nominees Ltd., a wholly-owned subsidiary of the Bank of England. Bank of England Nominees Ltd. have given a number of undertakings about the use to be made of the exemption. They will hold securities as nominee only on behalf of Heads of State and their immediate family, Governments, official bodies controlled or closely related to Governments, and international organisations formed by Governments or official bodies. They will in turn seek certain assurances from anyone in the eligible categories who wishes them to hold the securities as that person’s nominee. These assurances are to cover
(a) the fact that the person is the beneficial owner of the securities to be held by Bank of England Nominees Ltd.;
(b) that the beneficial owner will not use his interest in any securities held by Bank of England Nominees Ltd. to influence the affairs of the company in which shares are held except as shareholders in general meetings of that company;
(c) that the beneficial owner is aware of his overriding obligation, under Section 33 of the Companies Act 1967 as amended, to disclose his interest to the company in which shares are held if he is interested in 5 per cent. or more of that company’s share capital. 152W
(4)After the appointed day, no dividends on Bank stock shall be declared but in lieu of any such dividends the Bank shall pay to the Treasury, on every fifth day of April and of October, [F1a sum equal to 25 per cent. of the Bank’s net profits for its previous financial year, or such other sum as the Treasury and the Bank may agree.]
Bank of England Act 1946