UKIP is the populist Trumpism of Britain. His outrage is understandable, but his knowledge of the actual way the money system works is flawed. Private Banks create money…and look for reserves later…from the FED. That means Private Banks are IN CONTROL of the money system…and no greater argument for Public Banking as a structural presence in the economy can be made. That is, present but controlled by a National Credit agency where borrowers are vetted by the Public Banking system via honest underwriting based on creditability, ethical purpose for the loan and non-instability to the overall economy, and THEN approved/funded by the National Credit agency. This properly places sovereign control of the money system in the hands of this national agency whose policies are the reflection of Grace as in benevolence and freedom toward the individual with a universal dividend, and free flowingness for the economy via a discount to retail prices.

Now why must there be a dividend and discount. For freedom and free flowingness for the economy is the short answer, but the real why is because as a flow in high tech advanced economies costs and hence prices will always tend to exceed incomes simultaneously produced. For instance:

A business takes out a loan of $1 million to build facilities, its means of production and other costs so it can actually start producing. The building and means of production costs $600k.  Now IN ADDITION to principle and interest…the business must recoup the $600k (or more) to eventually replace its depreciated/obsolesent means of production/capital facilities. This is most basically why 90% of businesses fail. Micro-economically the system is onerous and macro-economically the system is IMPOSSIBLY onerous because there is never enough individual incomes produced to liquidate ALL of the COSTS of production.

Here’s the general outline at wisdomicsblog.com

The Essentials For Monetary and Economic Transformation
Integrate monetary Grace as in Gifting into the economy with an ongoing universal Dividend distributed directly to the individual, and a discount to prices at the terminal end of the productive process, that is at retail sale, and you will equilibrate the economy’s most basic disequilibrium.

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Create a Tri-Level Banking and Financial system with:

A. a sovereign central bank whose primary and controlling concept again is Grace as in benevolent, gracious and yet undoubtedly in control of the original creation of money and the ethical distribution of it to individuals as per above, to state and local governments and to commercial entities and individuals via loans by a

B. Public Banking structure which is also guided by the concept of Grace as in prudent and virtuous purposes, has rigorous underwriting standards and whose profits after payment to employees is returned to the government general fund or distributed back to individuals

C.  Private Banking that can aggregate and intermediate only funds that have already been earned/saved and yet cannot leverage such funds up as this would be the sole responsibility of the sovereign central bank.

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Align any regulatory policies with Grace as in integrity and wholeness of the entire system as well as Grace as in consideration for both the individual and the ethical business entities who show their good will and gracious appreciation for a system that actually frees the individual and creates an economy that truly is able to flow freely.

Structurally there would need be little other change as Grace as in transformation…truly is a transformational concept.