A Monetary System for the New Millennium

verfasst von Citrus, 22.01.2001, 07:14

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To explain, imagine the first bank which prints and lends out $100. For its efforts it asks for the borrower to return $110 in one year; that is it asks for 10% interest. Unwittingly, or maybe wittingly, the bank has created a mathematically impossible situation. The only way in which the borrower can return $110 of the bank's notes is if the bank prints, and lends, $10 more...at 10% interest.


There is no such thing as a static heap of money created by hard work and business cunning. Money flicks in and out of existence as credit and debit balances; the money supply swells and contracts continuously as loans are created and then destroyed. Money is simply a bookkeeping system; a man created device.

The man who invented the monetary system which we use today was a Scotsman, John Law, who lived during the 18th. century. He invented a new type of money to replace the old one of specie (the use of coins). In doing so he created the mechanism to finance the industrial revolution, and ultimately our modern technological world.

But the situation is not completely bleak. Just as John Law found a way around the impasse of coinage, so there are solutions for the problem of unrepayable debt. Obviously the first thing to do is make sure that the ratio of credit to debt is always the same. Under the Fractional Reserve ystem, $100 credit is created and $110 debt is demanded in return; that is, there is always more debt than credit. This equation should be $100 credit equals $100 debt.



<ul> ~ http://landru.i-link-2.net/monques/newmonsys.html</ul>
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gesamter Thread:

• krankes Geld und Jubeljahre - Citrus, 22.01.2001, 07:05
  • Abolish the IMF - Citrus, 22.01.2001, 07:07
    • A Monetary System for the New Millennium - Citrus, 22.01.2001, 07:14
      • Re: A Monetary System for the New Millennium - Diogenes, 22.01.2001, 09:36
  • Re: krankes Geld und Jubeljahre - Luschi, 22.01.2001, 12:23
  • Re: krankes Geld und Jubeljahre - nereus, 22.01.2001, 13:42