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