Thursday, 9 April 2015

Who is the wholesaler or retailer of credit is the key to equality.

Making the case for a Peoples Public Credit Money System Funding Structure.

As long as any government of any nation structures its money system funding structure as only a retailer of wholesale credit originated by an entity outside of its own economy, those governments will always be subservient to foreign lender rule and surrendering the majority of its citizens into ever increasing debt servitude.

Despite what the foreign privately owned central bank handlers of the New Zealand financial system keep telling us, super cities are not economic drivers of nations, they are in fact unsustainable sink wells creating increased demand for their loans of interest charged credit.

Below is my policy suggestion to break the cycle of decline of the regions in cases where there is a clear socially viable project, for which exists the natural resources to do it, for which exists the people seeking to gain some units of purchasing power currency in exchange for their services of building it, but it is said it can not happen, for the want of there being enough profit for some foreign entities credit to enable it to happen.

A solution that would address the ever increasing monopoly of the New Zealand economy by corporations using very questionable comparative advantages and who are much more interested, literally, in short-term profits, than alleviating the ongoing chronic balance of debt repayments crisis New Zealand, as a whole, been suffering since 1833;

- Need not nationalise all of banking

- Only the wholesale credit banking level.

When a nations currency origination credit mechanism is not borrowed from an outside entity, not owed to any other entity, it can be the mutual cooperative, economic enabler, that money as a system was invented and intended to be.

Originated free of interest charges at the wholesale currency origination credit mechanism level, with principle only then needing to be repaid.

Imagine the increased prosperity that the citizens and businesses of our economy could enjoy, with the massive additional cost of foreign entity interest and bankruptcy receivership's, that are presently factored into our day to day cost of commerce - being gone.

A state bank, held in public trust, can give interest free loans to state development agencies, to build the base essential of life infrastructure of society, which once the principle has been repaid, then remains as assets held in public trust, to be, from then on, supplied as public service, at cost price only to the citizenship.

This will be a form of national dividend, in the form of services, rather than currency, as a reward for any citizen that does no physical or property damage to any other citizen and contributes to the upkeep of civil society.

Forget about passing ever increasing debt onto future generations. That would be a gift I would much prefer to be recorded in history as having being part of giving.

Private banks and private citizens can then do deals of already existing central currency at what ever fee rate structures they so desire, but at their own risk based upon genuine supply and demand competition.

The state bank entity, held in public trust, will always own and control the payment, transfer, settlement system software of the nation, funded by the peoples public credit.

The first step I would take in any reform package would be to do what Malaysia did during the 1990's Asian financial crisis that helped them survive better than most - that being stating that from an announced point in time any currency that has been converted into your currency can not be converted back out for a set period of time.

This reduces the amount of foreign debt originated credit currency coming in and prevents the chaos that can be caused by it being able poor out in large quantities - while your money system funding structure reform is sorted out.

I contest that these other protections against inequitable economic opportunity need to happen in combination at the same time;

All citizens presently being driven to despair by the level of interest payments upon private bank loans, that have land as part of collateral security, can have those loans paid out by the state bank, with the land then being locked into public trust, to never be able to be individually privately owned ever again, only ever leased or managed on behalf of the public trust, as many other nations do already.

All central and local government debt will be paid off by the state bank, owned in public trust, with all land that was collateral security for those loans being locked into the public trust, to never be put up as collateral for private bank loans ever again.

Primary productive land base, once locked up in a public trust development agency, such as Landcorp, renamed Land Mutual Cooperative or the like, that agency could become the generator of much employment via noxious weed control programs or noxious animal control programs, via more environmentally friendly old fashioned methods.

This could not only boost employment and the economy, at cost price only, but reduce the need for expensive toxic products being used upon our primary productive land base.

Without the private bank interest repayment imperative controlling our every economic action, the produced goods from the national mutual cooperative development agencies, can then be better distributed to ensure they benefit as many as possible, internally balancing the economy within our own nation, before we trade with the outside world, goods or services that are truly only surplus to the needs of our own society.

Without the foreign entity interest repayment debt imperative, we are free to barter trade or trade for foreign currencies on a far more mutually cooperative basis.

After all, once you comprehend that presently it is the value of our very own natural resource collateral that the foreign lending entities get to type into their accounts and then give back to us as interest bearing loans, to then circulate as our currency, sovereign peoples public credit, issued free of interest, by a state bank, held in public trust, makes perfect common sense, does it not?

The structures above, will also alleviate the ability of the foreign lending entities, as a whole, cooking the credit books, in pursuit of profits by the senior owners and executives of those entities, by issuing more interest bearing credit to society than actually physically exists enough income producing assets to service the level of interest payments they demand.

Secondly - Here below are details of what I contest needs fixing within the present money system funding structures of New Zealand and why. Also the new constitutional stabilisers needed to keep the reformed Peoples Public Credit Money System Funding Structure balanced and honest. Plus the names of other eminently credible economic experts any future government would benefit a great deal from giving them a hearing;

Mass counterfeiting of credit by the global banking system is starting (Feb 2016) to crash the global economy again.

The seemingly impossible funding puzzle that is afflicting much of the world is a very simple equation really;

This -
Interest wealth transferring mechanism.

or this -

State Bank Control of Credit at the Wholesale Level.

is the question !

The answer imho must include the constitutional checks and balances outlined within this article;

Re-conceptualizing Money for a 21st Century Society

A new, complementary Treasury-issued currency (perhaps call it “Citizen Dollars”) issued as credit rather than debt. In other words, such currency would not be a loan that has to be repaid with interest.

Since Citizen Dollars are issued as credit and do not need to be repaid, they would become inflationary if there were not a means for them to flow in and out of the system. Following the money-as-energy metaphor, energy becomes depleted (“used up”) after doing work. If it did not, the planet would rapidly burn up. Similarly, money that is not actively doing work needs to be drawn out of the system in order for its utility not to be diluted by inflation.
A natural way to do this, without resorting to taxation, is to place a small periodic negative interest charge (“demurrage”) on money that is currently dormant in accounts. This discourages hoarding and encourages money to continue to circulate and do work. For example, a one-percent per month charge on held cash would render it valueless in about 10 years. (If this sounds objectionable, compare this annualized 12% charge to current income tax rates.)

Note that credit-based currency is a fundamentally different entity than debt-based money. Accordingly, the principles that guide the use of one cannot directly be applied to the use of the other - any more than the rules of baseball can be used to direct a football game. Several mind-shifts about the nature and use of money are required. Citizen Dollars:
• …are not a loan and don’t need to be repaid
• …are not subject to taxation (it would be absurd to give with one hand and take with the other)
• …are a government-supplied utility (like roads and bridges) to be used not owned (This is actually true for all money. Losing sight of that is largely responsible for our current economic mess)
• …long-term saving of Citizen Dollars is a vice to be avoided, not a virtue to be rewarded (money needs to circulate and do work, not be unproductively hoarded)
• …do not have durable, permanent value like gold or silver but rather have a lifespan and an expiration date
Furthermore, many of the dynamics of debt-based money do not apply:
• Being issued as credit, Citizen Dollars do not require the income taxation otherwise necessary to pay interest on debt.
• Citizen Dollars are not “welfare”. It is simply taking privileges currently given only to the central banking system and now granting them directly to the citizens.
• Citizen Dollars are not “free money for doing nothing”. It is based on the premise that whatever citizens do, they contribute in some way to the whole system. The Treasury then takes on the function of a not-for-profit venture capital firm that “hires” the citizenry as part-time investor agents.

The “part-time” aspect of the above statement is significant. While one might eek out a bare existence on Citizen Dollars, most people will want to be engaged in productive activities that offer challenge and interest and enable a higher standard of living.
Features and Benefits

Several social and economic features are immediately obvious: no taxation to repay debt and interest, more robust economic activity at all business levels, no absolute destitution with attendant problems like homelessness and crime - therefore no need for many government aid programs.

Rather than killing incentive and innovation, the economic security and freedom offered by Citizen Dollars would unleash a flood of new creative, productive endeavor. The current all-or-nothing risk nature of new ventures would be mitigated, encouraging new creative efforts. Moreover, the current economy primarily values the production of “stuff”. Other important aspects of society - teachers, childcare, social work, emergency response, artists, writers, musicians, nature conservancy - are always struggling for support. Such people, like the stay-at-home mom, bear economic costs but are often not compensated for the value they add to society. These could now be accommodated, while reducing the chronic begging for support from public and private sources.

Moreover, many people are presently tied to jobs they hate, but are afraid to leave for fear of destitution. Released from the fear of falling into an abyss, workers could be free to find work that is more reflective of their true talents and interests.

Beyond this, how many social ills, personal to international, are driven by chronic deprivation or fear of the same? (The maxim: “There’s nothing more dangerous than a man with nothing to lose.”) The economic foundation of security and dignity provided by Citizen Dollars would have primary benefits and secondary ripple effects that may be difficult to overstate.

Distribution of a national dividend of hard public services funded at cost price only by 
Peoples Public Credit, means that the most vulnerable of society - the children - are taken care of before greed or poor choices can come into play.

The cycle of decline of the regions can be brken in cases where there is a clear socially viable project, for which exists the natural resources to do it, for which exists the people seeking to gain some units of purchasing power currency in exchange for their services of building it, but it is said it can not happen, for the want of there being enough profit for some foreign lending entity to enable it to happen.

A solution that would address the ever increasing monopoly of the New Zealand economy by corporations using very questionable comparative advantages, when compared to the citizens and businesses of honest enterprise within the nation, much more interested, literally, in the profits of foreign lending entities, than alleviating the ongoing chronic balance of debt repayments crisis New Zealand, as a whole, has suffered since 1833.

I contest The assistance of these great people from the highest level of finance academia - regulation and banking should be sought;

Alternative Economic Advisory Panel

I had a dream.......................................

The Reserve Bank of New Zealand ( RBNZ ) will be tasked with complete and sole responsibility issuing our nations electronic money supply in addition to the role it already plays with our notes and coins. Banking corporations will no longer be able to create credit ( which is monetised at draw down ) but will function solely as intermediaries in the lending process. The RBNZ will be solely responsible issuing New Zealand's money supply, free of the impost of interest charges at the wholesale credit level, as a sovereign, New Zealand owned, non-commercial, non-profit entity, in a democratic, transparent and accountable manner.