Tuesday, 11 February 2014

Illegal Policies at the Bank of England?

Part 1
Could the Bank of England Be Violating the Maastricht Treaty?
The following article presents the view that the Bank of England may be in violation of the Maastricht Treaty that forbids governments of EU member states printing money in order to finance their budget. Britain is a signatory state to the Maastricht Treaty.

The Bank of England is, officially, an independent public organisation owned by the Treasury Solicitor on behalf of the British Government and has the authority to manage Britain’s monetary policy. The BoE is responsible for issuing all money in England and Wales, and decides how much money may be issued in Scotland and Northern Ireland.

The Treasury, with the approval of Parliament, may order the BoE to print any amount of money. Since January 2009, two successive British governments have given the order to the BoE to circulate a total of £375 billion in what is known as Quantitative Easing.

This money has been used to purchase mainly government bonds, not directly from the Treasury, but from pension funds, insurance firms and banks which had already purchased these bonds from the Treasury. So instead of the Treasury paying back the money to its lenders who purchased government bonds, the BoE has minted out of thin air £375 billion to pay out lenders to the Government, thus funding the Treasury through the back door. Indeed, the Bank of England may as well have printed out of thin air this sum and placed it directly in the Treasury. It would have had the same effect.

Is this contrary to the 1992 Maastricht Treaty? Is it proof that our current Parliament, and the one which preceded it, may be involved in a gigantic financial scam? In fact, that which is forbidden as per EU treaty is also forbidden under British Law, as successive British governments have bound British sovereignty to the European Union.

If Britain were to declare the Maastricth Treaty null and void, perhaps the Bank of England's Quantitative Easing programme could pass as an intervention carried out by the central bank of a sovereign state that is not bound to a treaty that prohibits monetising of public debt. But as the Maastricht Treaty is the founding declaration of the European Union, Britain would need to go further and declare EU authority as not binding on Britain. All EU treaties and laws would then need to be cancelled from British Law. 
To fail to do so would mean, in our view, that there is a £375 billion scam.     

European Central Bank and Maastricht Treaty
How do we know Britain is not alone in this imminent financial scandal? Quite simple! The European Central Bank intends to print money out of thin air and lend it to banks in Eurozone countries at a 1% interest rate. These banks in turn would use that money to lend it to their own government treasuries at a higher interest rate, thus financing the state budget of various Eurozone countries with money circulated through Quantitative Easing ie printed from thin air. The same law applies: it is illegal under the Maastricht Treaty. Therefore it would be a financial scam involving numerous Eurozone countries and the European Central Bank, no less than it currently involves the British Parliament and the Bank of England.

In February 2014, Germany’s constitutional court has ruled that the European Central Bank would be acting illegally if it violated the Maastricht Treaty prohibition to print money in order to artificially finance the budget of individual member states of the Eurozone. 
Basically, it is illegal to monetise the public debt in Britain and in any other member state of the European Union signatory to the Maastricht Treaty.

Written by D. Alexander

How the British economy makes lots of money

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