Showing posts with label prosperity. Show all posts

Friday, 20 December 2013

Money....How is it Created?

Blogger Ref Link http://www.p2pfoundation.net/Transfinancial_Economics

Unlike virtually all monetary reform groups Transfinancial Economics believes a more pragmatic approach towards banks, and corporations could be the way forward. Furthermore, it offers a powerful electronic methods for dealing with serious inflationary pressures in the economy.

RS.

The following data originates from the following

If Banks can Create Money, then why did Northern Rock run out of Money?

By Alistair McConnachie Some people who are opposed to our reform will claim that we must be wrong when we say that “banks create money” because, “If banks can create money, then they should never go bust.” This article was written with credit due (or a debt owed!) to Ben Dyson and the Positive Money […]
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How the Fractional Reserve System Works

By Alistair McConnachie This article is intended to provide Money Reformers with important background information on the fractional reserve system – and which may help them if they have to explain it at length in any kind of public situation. The explanations which we’ve extracted from the textbooks below, are clear and concise and are […]
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How Banks Create Money Out of Nothing

The following has been compiled by Alistair McConnachie, from mainstream economics textbook Success in Economics by Derek Lobley B.A. (London: John Murray Publishers Ltd, 1978 edition), which was part of the “Success Studybooks” series. It was intended to be “appropriate to the Economics syllabuses of many of the professional bodies such as … the Institute […]
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The Money Trick

At some unknown, but fateful, point in medieval history, a moneylender realised that the essence of a viable money system is confidence and that, once this confidence was established, a magical and very remunerative trick could be played. Typically, the moneylenders were possessors of a stock of precious metals, which they would loan out into […]
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How Private, Commercial, National and International Money is Created

The following was abridged by Alistair McConnachie, from the works of Michael Rowbotham The financial system currently adopted by all nations is often described as “debt based”, since the process of going into debt is relied upon almost exclusively to create and supply money to their economies. By the action of lending to borrowers, commercial […]
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Money Reform is Not Inflationary

Blogger Reference Link http://www.p2pfoundation.net/Transfinancial_Economics

This article appeared in Prosperity, April 2009

By Alistair McConnachie
Following the press coverage this year about “quantitative easing”, it is clear that the major obstacle against our Reform is fear that new money created by the State is always “inflationary”.
Certainly, new money can be inflationary. This is so when it is spent on the wrong thing – that is, when it is spent on short-term consumption, rather than long-term investment (education, training, research) and production, and when it is spent without regard to the 6 policy considerations listed here:
1. Control of Capital
If we pump in billions, but billions are taken out the country by individuals, corporations or financial institutions, then the economy is not benefiting in the long-term!
2. Control of Imports
On what is the new money in the economy being spent? If it’s on consumption, instead of investment and production, then all it may be doing is making the importers of cheap foreign goods wealthy! We will be giving people money to undermine the industry of their own country! Money will be leaving the country and doing nothing for the long-term health of the economy.
3. Control of Borders
If we allow the newly-created jobs to be filled by imported migrant workers, or even illegal immigrants, then there is no long-term benefit to the economy. There has been no long-term national investment in education, training and research. No new traineeships or jobs for the nation’s citizens have been created to ensure long-term productivity, and any wealth generated will eventually be taken out the country.
4. Control of Welfare
Money pumped into the economy via the Benefits system, for example a “Citizens Income” can backfire if you allow these benefits to be given to people who are not national citizens and who will take the money out the country. Similarly, unless conditions are in place to limit the Benefits to national citizens, then such a generous programme will simply encourage welfare immigration, making the matter worse.
5. Lower Taxes
Lower taxes enable people to keep more of their own money and – we trust – invest it for their long-term interests, (children’s education, enterprise, pension) which will also benefit the economy.
6. Encourage Savings
This enables people to have a cushion to see themselves – and the economy – through the bad times. This also ensures the nation’s banks have long-term healthy balance sheets. Savings can be encouraged by not penalising them via the tax system.

SPENT PROPERLY, INVESTMENT WILL LOWER COSTS!
The following was circulated by Stephen Zarlenga of the American Monetary Institute (www.monetary.org) on 4 March 2009:

Whether new money spent into circulation is inflationary or not will depend in large part on where and how it is spent. Direct it into warfare or pushing up asset prices as in a real estate or a stock market bubble, and it will be inflationary, at least in the areas into which it is directed, without production.
But direct it into creating goods and services, and it’s not necessarily inflationary because you are left with the goods and services, and they will tend to keep prices down.
Directed into infrastructure, it makes everyone in the society more efficient and effective, again putting pressure to keep any inflation down.
The classic example is the Erie Canal which lowered the cost of shipping goods from the East Coast to Buffalo (then the midwest) from over $100 per ton down to $9 or $11 per ton.
Look what good infrastructure would have saved in New Orleans! Or in Minneapolis, where people who had used that bridge before it fell down probably lost 2 hours a day getting back and forth to work. Even directed largely into research and it’s not necessarily inflationary when you consider that investing in NASA Space Agency has given us all the modern computerization/communications our lives have come to depend on. That just took a decade and a half.
In our American Monetary Act, the task of guarding against inflation is closely monitored and in the hands of the monetary authority. It doesn’t have the taxing authority, as it is presently written – that would require tremendous political alteration; but it does have the power to withhold substantial amounts of the money already created, out of circulation and to stop creating more if necessary.

Purchase back issues of Alistair McConnachie’s Prosperity money reform journal here
And here is a link to Alistair McConnachie’s Google Profile.

Friday, 29 November 2013

Prosperity, and Monetary Reform

I have known about Prosperity for a long time, and it is a worthwhile group of people involved in monetary reform. RS

Welcome to the website of PROSPERITY, a monthly Money Reform journal
based in Glasgow, Scotland, which is dedicated to spreading understanding about the nature of our debt-based money system, and campaigning for publicly-created debt-free money.
What is Money Reform?
Money Reform (sometimes called, Monetary Reform) highlights the fact that our economy today is "debt-based", meaning that virtually all money is supplied into the economy as a debt owed to the private banking system. We are reliant upon this banking system for the supply of almost all our means of exchange. In Britain today, 97% of our money stock is created by this private banking system as a debt, while only 3% is created by the government debt-free. As we explain on this website, that is both a technical absurdity and a democratic offence.
As a consequence of virtually all our money coming into existence as a debt, we see the indebtedness of people, families and countries growing daily. Money Reformers believe the present debt-based system perpetrates debt slavery, and this is destructive of society, the environment and the planet. Money Reformers believe this debt-based money supply is the big issue which governs all the issues.
Money Reformers advocate that the virtual Monopoly of Money Creation must be removed from the private banking system and we work to establish a publicly-created supply of debt-free money, created on behalf of the people, by a public body. This money should be spent, not lent, into society on the basis of proven need. This will gradually reduce the overall burden of debt in society, break reliance upon the private banking system for the supply of money, open potential for change, and empower people democratically. The Money Reformers' proposal is not a left-wing, or right-wing idea. It's just good sense!

This website carries some of the articles, interviews, and reviews which have appeared in back-issues of our journal, and which investigate and explain the debt-based money system, and which publicise the debt-free alternative. If our debt-free Money Reform ideas are new to you then we recommend reading the following articles to obtain a comprehensive introduction to our case.
For a short, general introduction to the problem of a debt-based money supply see Bankrolling the World into Chaos by author Michael Rowbotham, and also see his call that debt-free money is The Single Most Important Reform Then for a fully comprehensive explanation on how the banking system creates money for both private and commercial needs, including a description of how notes and coins are created, how banks create money for national needs, and how international debt is created, see How Money is Created.
Bill Clarke explains The Case for Monetary Reform and emphasises the extent to which most people are unaware of the debt-based manner in which almost all money comes into existence. This article should be read with Richard Greaves' summary of The Negative Consequences of the Debt-Based Money System.
Alistair McConnachie addresses the democratic necessity for Money Reform in his articles Money for the People and by the People and in Publicly-Created Money: The Democratic Imperative where he also deals with some frequently heard objections to the Money Reformers' debt-free money proposal.
James Gibb Stuart is Making a Case for Money Reform and laying out a basic debt-free money proposal, while Ron Morrison deals with how such a proposal could be brought into operation, and advocates that we Establish a State Bank to provide society with a regular supply of debt-free money.

Prosperity developed from the meetings of the Bromsgrove Group which meets annually outside Bromsgrove, near Birmingham. Each issue carries the Group's Statement of Belief which is a succinct general summary of the Money Reform case. Prosperity does not promote any particular "brand" of monetary reform, nor are we critiquing the system from any particular political or religious perspective. It is edited and published by Alistair McConnachie and can be contacted at:

PROSPERITY
268 Bath Street, Glasgow, Scotland, UK, G2 4JR
Telephone : 0141 332 2214 Fax : 0141 353 6900

Blogger Reference Link http://www.p2pfoundation.net/Transfinancial_Economics

Wednesday, 20 February 2013

Peoples' Capitalism.......

My Vision

A world without poverty

Imagine a world without poverty, or hunger, or homelessness. Imagine a world where all live in decent homes, with plenty to eat. Imagine a world where everyone has access to a good education, and everyone lives in a safe clean community without fear of crime or violence. Imagine a world where every person has good medical care, every senior citizen can look forward to a secure retirement, and all disabled and elderly can afford assisted living and elder care in their declining years.

A world of prosperity

Imagine a world where economic wealth is efficiently created and equitably distributed. Imagine a world where jobs are plentiful, unemployment is low, and workers are well paid. Imagine a world where every adult receives an income from dividends on capital assets that is large enough to support a decent standard of living. Imagine a world where average income consistently increases more than 5% per year.

A world of opportunity

Imagine a world where opportunities abound to become rich, but no one is poor. Imagine a world, where there is no limit at the top for how wealthy anyone can become, but there is a limit at the bottom that prevents anyone from sinking into poverty. Imagine a world where everyone has an opportunity to succeed in any field of endeavor, including professional, business, and finance – and no one is homeless, or hungry, or without financial means. Imagine a world where many are wealthy, and all are financially secure.

A world without pollution

Imagine a world where growing economic prosperity and high living standards are environmentally friendly. Imagine a world where society is both able and willing to afford the cost of a clean environment. Imagine a world where the air is pure, the rivers are clean, streams and lakes are clear, the environment is protected, and wild life and wilderness are preserved for future generations. Imagine a world where clean renewable energy is inexpensive and easily available. Imagine a world where the power to light, heat, and air condition our homes, to power our cars, to run our transportation systems, to brighten our cities, and to power our industrial facilities is derived entirely from renewable sources that generate no air or water pollution and create no risk of radioactive contamination.

A world without war

Imagine a world where nations live in prosperity and peace without terrorism or war. Imagine a world without dictators and tyrants. Imagine a world where poor and ignorant masses no longer exist to be exploited by political and religious zealots. Imagine a world where all are too well educated and financially secure to be seduced by bigots or tyrants. Imagine a world where historical grievances have been consigned to the past, and where political passions are inspired by realistic hopes and dreams of opportunity, prosperity, and longevity.

My plan to achieve my vision

My plan is simple in concept. Increase the rate of wealth production by raising the rate of investment through public funding and personal savings. Distribute the returns on public investments directly to the people through dividends. I call this Peoples´ Capitalism. At the Peoples' Capitalism website I explain in some detail how public money could be raised and invested in profit making enterprises that pay dividends to the public on an equal per capita basis. The result would be rapid and stable economic growth, from which everyone would benefit. Everyone would own a share in the means of production. Everyone would be a capitalist. Eventually, public dividends would rise to the point where poverty would cease to exist. A clean environment would be affordable, and the primary source of tribal, national, and religious conflict would be eliminated. Humankind would enter a golden age of peace, prosperity, and opportunity.

Peoples' Capitalism:
The Economics of the Robot Revolution by

The Economic Realms