New Book : "ending this crisis, avoiding the next " / "en finir avec cette crise, et éviter la prochaine" / “diese Krise beenden, die Nächste vermeiden“

Please have a look at this book, 

which I wrote in 3 languages so that most people could read it.

A short description is at the bottom of this page. 

You can order it at Amazon, either as a hard copy, or as a download for Tablet or Kindle.

Cheers

                       Jean-Claude Schmitz

Luxembourg

 

English version           :           "ending this crisis, avoiding the next "

Version française        :           "en finir avec cette crise, et éviter la prochaine"

Deutsche Version       :            “diese Krise beenden, die Nächste vermeiden“


Description du Livre                 /              Book Description           /      Beschreibung des Buches

Le livre n’est pas bien épais, mais offre -          un concentré d’analyses sur les arrière-fonds de la crise financière que nous traversons, et -          un ensemble de propositions que j’espère cohérentes pour nous en sortir, et pour éviter la prochaine crise Vous allez me dire pourquoi un ingénieur comme moi se mêle de ces affaires , la réponse est -          que manifestement la politique et les économistes ont du mal à nous en sortir,   et -          que le système financier qui s’est bâti tout au long des siècles nous procure maintenant tellement d’ennuis qu’il mérite bien d’être revu sous un angle différent, et peut-être plus strict. Le livre existe en version anglaise, française et allemande : en français: "en finir avec cette crise, et éviter la prochaine"  de Jean-Claude Schmitz et vous pouvez le commander chez Amazon en tant que livre en papier, ou en tant que download pour tablette ou Kindle. Vous pouvez me joindre pour commentaires et questions en me joignant sous jcswork@pt.lu Merci de participer à la discussion, le sujet nous touche tous.          Meilleures Salutations, et à bientôt

The book has not many pages, but it offers -          a concentrated analysis of the deeper roots of the financial crisis that we are going through, and -          a set of proposals that I hope are coherent to get us out of there, and to avoid the next such crisis You will wonder why an engineer like me is poaching in these realms, well it is    -          because politicians and economists obviously have a hard time getting us out of this mess,         and -          because our financial system that built itself up over the centuries now gives us so much trouble that it deserves to be reviewed under a different angle, and maybe a stricter one. The book is available in english, french or german: in english: " ending this crisis, avoiding the next "   by Jean-Claude Schmitz  You can order it at Amazon, either as paperback version or as download for tablet or Kindle.  You can reach me for comments & questions at      jcswork@pt.lu Thanks for participating in the discussion, the subject does concern us all. Best regards, and see / talk / mail you soon

Das Buch hat nicht viele Seiten, aber es hat es in sich, und bietet: -          eine konzentrierte Analyse der tieferen Ursachen der Finanz-Krise, welche wir gerade durchstehen müssen -          einen Satz von hoffentlich kohärenten Vorschlägen, um uns da heraus zu bringen, und um die nächste Krise zu vermeiden Ihr werdet euch wundern, warum ein Ingenieur wie ich dieses Thema aufgreift, nun, die Antwort ist -          weil Politik und Volkswirtschaft  offensichtlich die grösste Mühe haben, uns aus diesem Desaster heraus zu führen,         und -          weil unser Finanz-System, welches sich über die Jahrhunderte aufgebaut hat und uns jetzt soviele Schwierigkeiten macht, es verdient unter eine andere Lupe genommen zu werden, eine vielleicht strengere Lupe. Das Buch ist gibt es in englischer, französischer  und deutscher Version, auf Englisch: deutsch : “diese Krise beenden, die Nächste vermeiden“  von Jean-Claude Schmitz und Sie können es bei Amazon bestellen, als richtiges Buch oder als Download für Tablet oder Kindle. Für Kommentare und Fragen können Sie mich unter  jcswork@pt.lu  erreichen Danke im Voraus für eure Beiträge zur Diskussion, das Thema betrifft uns alle Beste Grüsse, und bis bald

positive money, and how to distribute it The proposal is to have the Central bank generate money-no-debt, or positive money. That bypasses the banks in the creation of new money, gives the central Bank a much more direct influence on money circulation, and can easily be managed in a way to avoid inflation. And it will help bring the debt/money ratio down. Future money should be positive, acceptance of the concept may he helped by having people understand how it can be introduced into the economy, and how it might affect themselves. So, after the first bit of discussion, here some outcomes: Here is a list of 5 main options. 1 Reductions in taxes favors taxpayers (not all citizens are, since the poorest pay hardly anything, it has no direct benefit for them) 2 Direct spending into the economy (infrastructure, housing, transport, energy, or whatever) help for the government's budget, danger of politician abuses 3 Direct payments to citizens benefits everyone, richer folks may lose it again through taxation; much less danger of politicical abuse; can be part of basic income 4 Paying off public sector debt benefits the bondholders, if untaxed it may create inflation and asset bubbles for everyone else 5 Government to invest in key sectors of the economy (bonds, shares, venture ) enables local strategy, for good or bad; danger of politicical abuse my vote : would be for item (3), direct payment to citizen's account. Note: introduction of positive money into the economy should be ruled by : inflation targets just as the central banks have it today, plus GDP targets to keep circulation within targeted ranges while monitoring asset prices to avoid bubbles the last 2 points will call for the finance minister's help, and calls for his good collaboration with Central Bank (or having both under one command …)

Today's Monetary System

Today's Monetary System

Today's money is almost all created with an equal amount of debt by commercial banks, it is money-debt. It comes into being when somebody goes to this bank and borrows money, at that moment the money is created and the debt as well.

The banks are allowed to do that but required to hold at least x % of their loan book as reserves. The value of x may vary between 10 ..8 .. 5 .. 3 .. 1 .. 0 %, depending on where we look at. What counts as reserve may be money borrowed from the Central Bank, the depositor's money or the shareholder's equity.

All this debt asks for interests. Over time, two generations after WW II,  the interests have accumulated with the debt to 2,5 times the money issued. (cf Simon Thorpe's Blog)

This debt can only be serviced, its interest only be paid by borrowing more money from the banking system, which again increases the debt.

And so on.

Can we pay back our debt?

as it is being repaid to the bank; just as it was created when we borrowed it.

Since there is much more debt than money, we can never pay back all the debt.

The money with which we are paying back debt comes from the real economy, from money that is circulating, and that we earn.By paying it back to reduce our debt, we take it out of circulation and destroy needed economic activity and jobs.

If nobody wants to take on more debt, but everybody wants to reduce his debts, money is destroyed its circulation reduced on such a grand scale that economic activity is severely reduced due to a lack of money in circulation.

And the more we are paying back, the less we earn and the more trouble we have to pay back more.

Governments try to counterbalance by spending more money into the economy, money that they do not have but according to today's rules have to borrow, thus increasing debt even more.

So it is about time for a change in paradigms, of the way money is created.