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
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
sean@libertarian.co.uk
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:
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/
Monday 19 January 2009
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