a) TFE believes it is very important to work with present day banks during the phasing in of the of non-repayable money (ie.a commercial grant)for climate change and the other "humanitarian" projects which would be difficult if not impossible to fund by conventional finance. This would speed up the process of change rather than retard it if the financial system were challenged as the banking system is a very powerful vested interest. If there is a serious drop in profits (ie. lack of demand for repayable loans with interest) the Central Bank could create compensation instantly on a huge scale without leading to serious inflation.
b) Present day banks create most of the money in the world out of thin air as loans. This is involves a simple process in which numbers are tapped into a bank computer (ie money or digital data).This ofcourse is debt based money which requires interest over time.
c) It must be said that money has to be limited in a variety of ways (depending on the the commercial project) and hence maintain some form of credibility and value otherwise it turns into farce even if inflation can be controlled by flexible digital controls. Furthermore there must be robust oversight to ensure everything goes to plan.
d) Ofcourse ordinary mainstream credit creation would also exists with interest.
e) Though TFE believes in flexible digital price controls it also realizes that it is possible to create huge amounts of non-repayable money for various commercial projects that do not lead to serious inflation. However, it would though be wiser to have direct flexible price controls just in case things things go wrong at a later stage.
g) A novel but highly controversial approach to all this is that a commercial grant could be created with interest but would have it paid for by a Central Bank! In other words, a free loan!
