97% of our money is created by commercial banks when they make loans, i.e. interest bearing debt, not by the Bank of England or the Mint. Only 3% is created in the form of notes and coins. Thus the profits of creating money go to the commercial banks rather than the public coffers.
Over the last 40 years the commercial banks have increased the money supply at an average of 11.5% a year. And that was obviously too much too quickly. So if the increase in the money supply were say 5% a year, about £60bn a year could go to the government and reduce our taxes by that amount.
Given that the profits of the domestic banking sector are substantially less than £60 billion I\’m not really sure how that could be true.
Quite apart from the fact that the seignorage profits don\’t end up at the commercial banks: even if they did his numbers are still wrong.