Sir – In his letter (T&A, August 20), Mr Bird continues to demonstrate a very 1950s view of economics. He seems to genuinely believe that politicians, banks and the Bank of England are actually working in the best interests of the majority.

A few facts. UK interest rates are subject to a status criteria which is inversely proportional to wealth. Banks, corporations and government (the in crowd) can borrow at very low or 0 per cent interest rates (definitely not pay-day-loans at 5000 per cent).

The only across-the-board low interest rates are the ones being applied to savings. This is because banks no longer need customer savings to dole out as loans. Successive governments have kow-towed to banks to such a point that banks now create 97 per cent of the UK money supply, as loans and mortgages, out of fresh air.

Banks can also take government loans at 0 per cent or have the Bank of England print a few billion (£375 billion so far).

Finally, and despite the official figures, UK inflation is currently running around 7 to 8 per cent, and certain to rise. How else can this government ‘magic away’ their rampant borrowing of the last three years, which will double public sector debt by 2015?

Christopher Hindle, Osterley Grove, Bradford