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Libertarian Alliance: Let Failed Banks Go Under

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  • Dr Sean Gabb
    NEWS RELEASE FROM THE LIBERTARIAN ALLIANCE In Association with the Libertarian International Release Date: Monday 19th January 2009 Release Time: Immediate
    Message 1 of 1 , Jan 18, 2009
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      NEWS RELEASE FROM THE LIBERTARIAN ALLIANCE
      In Association with the Libertarian International

      Release Date: Monday 19th January 2009
      Release Time: Immediate

      Contact Details:
      Dr Sean Gabb on 07956 472 199 or via sean@...

      For other contact and link details, see the foot of this message
      Release url: http://www.libertarian.co.uk/news/nr073.htm

      “NO BAIL OUT OF THE BRITISH FINANCIAL SYSTEM” SAYS LIBERTARIAN ALLIANCE:
      “LET FAILED BANKS FAIL”

      The British Government’s latest proposed rescue of the financial system
      is a fraud on the taxpayers and will fail, says the Libertarian Alliance,
      Britain’s most radical free market and civil liberties policy institute.

      [The British Government proposes to spend up to £200 billion of the
      taxpayers' money on lending to the commercial banks in an effort to end
      the alleged liquidity crisis. This is in addition to the £600 billion
      already handed over.Full story at
      http://news.bbc.co.uk/1/hi/business/7836259.stm.]

      According to Sean Gabb, Director of the LA:





      “Final responsibility for this crisis rests with the authorities. For at
      least ten years, the Bank of England - and the central banks in most
      other countries - has kept interest rates below the market equilibrium.
      The result has been an frenzy of credit creation by the commercial banks.
      This led to an asset price bubble that has now burst.

      “The recession we now face cannot be avoided by pseudo-scientific
      manipulations of ‘aggregate demand’ It is the natural result of
      malinvestment and general speculation. A return to prosperity is best
      achieved not by trying to reflate the speculative bubble, but by allowing
      the liquidation of bad investments to proceed as quickly as possible.

      “We agree that this will be painful to those who lose money or
      livelihoods. But there is no avoiding the aftereffects of an inflationary
      boom.

      “Governments can stand back and let weak institutions fail. This will
      bring on the worst financial collapse since 1931, and be followed by a
      nasty recession. Or they can spray vast amounts of our tax money into the
      financial markets, which might briefly delay the worst financial collapse
      since 1931 and a nasty recession to follow.

      “The only real beneficiaries of this rescue will be those working in the
      financial markets. They have spent the past decade stuffing our savings
      up their noses while telling us they were invested. Now their friends in
      government have come up with a scheme to use our tax money to pay next
      year’s bonuses.

      “The Libertarian Alliance denounces this proposed rescue and predicts bad
      times for years to come.”

      END OF COPY

      Note(s) to Editors

      Dr Sean Gabb is the Director of the Libertarian Alliance. His latest
      book, Cultural Revolution, Culture War: How Conservatives Lost England,
      and How to Get It Back, may be downloaded for free from
      http://tinyurl.com/34e2o3. It may also be bought. His other books are
      available from Hampden Press at http://www.hampdenpress.co.uk.

      He can be contacted for further comment on 07956 472 199 or by email at
      sean@...

      Extended Contact Details:

      The Libertarian Alliance is Britain’s most radical free market and civil
      liberties policy institute. It has published over 800 articles, pamphlets
      and books in support of freedom and against statism in all its forms.
      These are freely available at http://www.libertarian.co.uk

      Our postal address is

      The Libertarian Alliance
      Suite 35
      2 Lansdowne Row
      Mayfair
      London W1J 6HL
      Tel: 07956 472 199

      Associated Organisations

      The Libertarian International - http://www.libertarian.to - is a sister
      organisation to the Libertarian Alliance. Its mission is to coordinate
      various initiatives in the defence of individual liberty throughout the
      world.

      Sean Gabb’s personal website - http://www.seangabb.co.uk - contains about
      a million words of writings on themes interesting to libertarians and
      conservatives.

      Hampden Press - http://www.hampdenpress.co.uk.- the publishing house of
      the Libertarian Alliance.

      Liberalia - http://www.liberalia.com - maintained by by LA Executive
      member Christian Michel, Liberalia publishes in-depth papers in French
      and English on libertarianism and free enterprise. It is a prime source
      of documentation on these issues for students and scholars.

      This news release will also be placed on the Libertarian Alliance blog -
      http://libertarianalliance.wordpress.com/
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