In 1526 Cardinal Wolsey, Chancellor of the Exchequer, debased the coinage by mixing cheaper metals with what was previously pure precious metal. This effectively allowed Henry VIII to enter into wars with France and Scotland which he would otherwise been unable to – by simply issuing more coins to pay for it all.

I would like to put this idea for consideration that governments are not allowed to issue straight bonds without an index linked alternative on every issue- Martin Webster

This followed an unsuccessful attempt to raise taxes. Having discovered this neat trick of alchemy the coinage was repeatedly debased, to the extent that the now wafer thin layer of ­precious metal would be rubbed off to reveal the King’s nose. Hence his nickname, Old Coppernose.

Within a mere 25 years, the coins were estimated to be worth less than a quarter of what they had been before debasement. Inflation took off. It is instructive to note that the people responded by hoarding the older, more precious coins and eventually all the debased coins had to be called in and re-issued with more precious metal.

Fast forward almost 500 years, and we are witnessing the debasement of currencies on a monumental scale. Only this time it is called Quantitative Easing, which does not sound so bad. It sounds reassuringly tranquil, and conjures up images of central bankers leaning back in their bean bag in a hip club as they nonchalantly order another round of printing to go with their gin and tonic.

I would like to put this week’s unorthodox idea number one up for consideration and debate (feel free to write in, all viewpoints welcome of course), that governments are in future not allowed to issue straight bonds without an index linked alternative on every issue.

The basis for the argument in favour of this proposition is that policies which stimulate excessive inflation, whether intended or not, have the same effect on pensioners and savers as outright theft. If you lend somebody a unit of value, you should get the same unadulterated unit of value back – with interest for not having had the use of your capital in the interim.

The interest is not there to compensate for the reduction in purchasing power in the first instance. An index linked bond would offer transparency by breaking down the return into two elements: the element to compensate for simply borrowing the capital (interest), and the index linked element as a form of penalty to compensate for the erosion of purchasing power.

The basis for the argument against the proposition is that governments would be forced to effectively underwrite their own inflation forecasts, and the liability for government’s mismanagement of the economy in so far as inflation is concerned would be transferred to the state.

• In the eurozone bunker, that place where some unelected, dull, unaccountable and well paid officials think that for every financial problem they have a political solution, no mention seems to be made of how we are going to grow our way out of our problems.

Ultimately growth is the only long term solution.

Yet what we get instead of enlightened leadership towards that simple end is yet more attempts to grab power from nation states, from the very people who got us into this mess, with the usual EU layer of fat to burden the economy with.

Take for example the latest proposal from Herman van Rompuy, the unelected, unaccountable, paid more than Barack Obama (if I were cynical I would suggest he would have to be, to give a subliminal message as to the EU’s relative importance), President of the European Council. He hails from Belgium (the idea of a nation state might therefore not come naturally to him) and nobody really knows who he is or what he does.

Be honest with yourself – did you even know he existed? Anyway, Mr Rompy exists, influences your life, and has been pushing the idea of creating a European Finance Ministry.

The most brilliant and relevant part of the plan is his suggestion that the ministry should be based in Frankfurt or Paris. For the EU, where some institution is based appears to be more important than what it does, or how much it costs, or whether it is fit for purpose.

Personally out of negligence I would have overlooked the importance of location and narrow-mindedly focused on how this new body could work in the interests of Europeans, the downtrodden impoverished people who inhabit Europa.

Had I thought of location I would have chosen Shanghai, to be close to those from whom I seek money. Or Gozo, to be different and give rise to a local jet business to fleece all the profligate eurocrats hopping between the two islands, for the benefit of my country.

But to think of Frankfurt or Paris and pronounce it to the world was a masterstroke. No wonder he got to the top of the EU pile. I bet Paris gets it – the gravy is so much better there.

This article is the objective and independent opinion of the author. The information contained in the article is based on public information. Curmi and Partners Ltd. is a member of the Malta Stock Exchange and is licensed by the MFSA to conduct investment services business.

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Mr Webster is head of equity research at Curmi and Partners Ltd.