MY SUGGESTION TO THE BANK OF ENGLAND GOVERNOR 2011

MY SUGGESTION TO THE BANK OF ENGLAND GOVERNOR

To: The Honorable Bank of England Governor

From: Athinarayanan Sanjeevraja

RE: Fractional Reserve Banking Systems

Suggested Remedies:

Good Morning Mr. Governor. Financial Times, London reported that UK people are advocate eliminating the fractional reserve systems. London school of economics professor also recommended eliminating fractional reserve banking system. It is absolutely erroneous.

Mr. Governor, if you are referring to full reserve banking, the banks will not be allowed to lend at all. That could throttle the economy unless the government steps in and supplies the money by fiat. I understand that the problem with fractional reserve was that bankers managed to dilute the reserves because they claimed that the reserves were monies that were sitting idle and they were losing profits. But UK banks came through recession nicely with good fractional reserve banking. Us banks were flubbed because their fractional reserves too low at 10% but Canada banks are came out better than both US and UK because Canada had 20% fractional reserves.

Mr. Governor, if you eliminate fractional reserve banking, you need to see a real depression. I would recommend raise the cash ratio for banks to 10% and you will have a far safe banking system.

Thank you very much for your kind attention to this issue Mr. Governor.

Sincerely,

Athinarayanan Sanjeevraja.

Comments

SUGGESTION TO THE PRIME MINISTER OF JAPAN YOSHIHIKO NODA

SUGGESTION TO THE PRIME MINISTER OF JAPAN YOSHIHIKO NODA To: The Right Honorable Japanese Prime Minister Yoshihiko Noda From: Athinarayanan Sanjeevraja Date: 30.09.2011 RE: Japan Energy Policy Suggestion: Changing Industrial Policy Good Morning Prime Minister. BBC World broadcasted your speech regarding alternate energy sources. I agree with your approach to reduce nuclear power in the medium term because having the nuclear reactors in an earthquake prone zone is not safe for the environment or the communities that live near them. Japan is struck in a difficult situation concerning energy. If you want to eventually move away from the nuclear energy, you’ll have to invest more alternative energy sources. If you can’t invest, then it may have to say with a nuclear power for a while. You need make the right decision because source of energy is dwindling. You have one more option which is Japanese people depend on nuclear power with only 1% but 9% including hydroe...

SUGGESTION TO THE FEDERAL CONSTITUTIONAL COURT, GERMANY

SUGGESTION TO THE FEDERAL CONSTITUTIONAL COURT, GERMANY To: The Right Honorable Federal Constitutional Court Vice President From: Athinarayanan Sanjeevraja Date: 05.10.2011 RE: Issuance of Eurobond Suggestion: Approval of Issuing Eurobond Good Morning Prof. Dr. Kirchhof. I am writing to express that Federal constitutional court explicitly rules out Eurobonds a few weeks ago. In addition you had warned, Ms. Angela Merkel, a Chancellor of the Federal Republic of Germany, never again to propose Eurobond. This is certainly not good news for me as well as Europe. German brothers and sisters in the Euroland must help in this difficult moment with iss...

SUGGESTION TO THE BANK OF ENGLAND GOVERNOR SIR MERVYN KING

SUGGESTION TO THE BANK OF ENGLAND GOVERNOR SIR MERVYN KING To: The Right Honorable Bank of England Governor Sir Mervyn King From: Athinarayanan Sanjeevraja Date: October 17, 2011 RE: QE Suggestion: Identify and correct the fundamental factors that are behind low economic growth. Good Morning Sir. The Bank of England has decided to undertake more QE. I agreed that during the financial crisis of 2007-2008 monetary policy was effective in re-establishing liquidity in the main developed economies especially US, UK and Europe. But current economic conditions in developed economies reveal problems whose solutions are far beyond the scope of monetary an...

Search This Blog