JCS Logo

JCS Logo

Freitag, 14. Juni 2013



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 …)


Keine Kommentare:

Kommentar veröffentlichen