Viable Solutions New And Old
VIABLE SOLUTIONS PRESENT AND PAST TO MONETARY, BANKING AND CREDIT SYSTEM CORRUPTION
1( Food for thought from the past being implemented today.
2( The best of modern comprehensive viable alternatives I have researched.
3( More lessons from the past.
1( Food for thought from the past being implemented today;
Silvio Gesell Worgl Money System http://www.youtube.com/watch?v=hxdPIOUTd2k
One of the most celebrated cases of community currency was that which occurred in the small town of Woergl in Austria in 1932-33. In the midst of the Great Depression, the mayor of that little town took the bold step of issuing into circulation a local currency, the impact of which was heard round the world. Many journalistic accounts have been written and circulated, but few definitive descriptions have been found, and even fewer critical analyses. But, because it is so celebrated, and because it was apparently so successful, this is a case well worth studying. http://www.reinventingmoney.com/documents/worgl.html
Prof. Dr. Margrit Kennedy has done some great work taking the ideas of Gessell into the modern era and leading to an alternative honest public money system being implemented in the Chiemsee region of Germany; http://margritkennedy.de/
2( The best of modern comprehensive viable alternatives I have researched;
Insiders are coming out;
Former JP Morgan Managing Director explains interest trap leading to systemic shortage of money in circulation compared to ever increasing compounding debt owed.
About John Fullerton http://www.capitalinstitute.org/view/directors ;
John Fullerton is the Founder and President of the Capital Institute. He is also the Founder of Level 3 Capital Advisors, LLC, an investment firm focused on high impact sustainable private investments. Previously, he was seed investor and CEO of Alerian Capital Management, an investment firm focused on energy infrastructure that grew to $250mm in assets under under his leadership, and before that, a Managing Director of JPMorgan. During an 18-year career at JPMorgan, John managed multiple capital markets and derivatives businesses around the globe, and finally ran the venture investment activity of LabMorgan as Chief Investment Officer. He was JPMorgan’s representative on the Long Term Capital Oversight Committee in 1997-98. John is currently a director of the New Economics Institute, Investors’ Circle, New Day Farms, Inc., and an Advisor to Natural Systems Utilities. He is a participant/author of the UNEP Green Economy Report. John earned a BA in Economics at the University of Michigan, and an MBA at the Stern School of New York University’s in the Executive MBA Program.
From 2011 interview http://ineteconomics.org/john-fullerton ;
” I learned that a lot of what we practiced in finance through no ill intent, this is unrelated to the financial crisis, and the ethical challenges of the financial system, but that the system itself is designed to propel growth in the economic system with no regard to the physical boundaries of the planet and with little regard to the social criteria, social constraints of human well being and so it struck me that a lot of the symptoms that we talk about such as climate change obviously being on top of everyone’s agenda, but ecosystem degradation, soil degradation, biodiversity loss. All of these issues are symptoms of an economic system that is essentially bumping into the boundaries of the biosphere, and if you think about finance and even our money system, which is built on a money system which is created through expanding money that has interest associated, so as the money supply grows the requirement to service money grows at a compound rate. That forces at a systemic level the economy to continue growing which if the economy is related to material throughput eventually creates this conflict with the boundaries of the biosphere. So its been a very profound realisation and what I have discovered is that there are an increasing amount of people thinking about this question, but its very much outside the halls of conventional economics and very much new economic thinking.”
http://www.capitalinstitute.org/ Great website founded by John Fullerton using all the resources of most every highly regarded new economic thinkers.
http://ineteconomics.org/ Institute of New Economic Thinking
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Solutions have been put to US Congress and England Parliament, time they were put to New Zealand Parliament;
USA;
“Washington D.C. (December 17, 2010) –As the nation struggles with long-term unemployment at rates not seen in generations, contracted credit and the hoarding of public dollars by the banks, Congressman Kucinich (D-OH) today introduced a dramatic new proposal to establish fiscal integrity, reassert Congressional sovereignty and regain control of monetary policy from private banks. The National Emergency Employment Defense Act of 2010 would allow the federal government to directly fund badly-needed infrastructure repairs and fund education systems nationwide by spending money into circulation without increasing the national debt. The bill would end the current practice of fractional reserve lending, whereby the economy depends upon private financial institutions to lend money into circulation.”
http://moneyreform.wordpress.com/2010/12/18/kucinich-proposes-landmark-reform-of-monetary-policy/
http://www.youtube.com/watch?v=6T1g4dhwfO0 Dennis Kucinich speech to US Congress
UK;
“Our proposed reform allows the state takes back the exclusive power to create new money and uses any newly-created money to increase public spending, reduce taxes. The government may choose to use some of the newly-created money to pay down the national debt. This would not simply be printing money to pay off the debt (which would be considered to be an underhand way of defaulting or reneging on the debt), as the amount of money created will be restricted to be just enough to keep inflation low and steady. By giving the government an additional source of revenue (the newly-created money coming from the Monetary Policy Committee), there is more chance that they will be able to use some of their revenue to make downpayments on the national debt.”
http://www.positivemoney.org.uk/our-proposals/
http://www.youtube.com/watch?v=HMGr-OuXihg Douglas Carswell speech to English Parliament
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3( More lessons from the past;
1764 – Benjamin Franklin is asked by officials of the Bank of England to explain the prosperity of the colonies in America. He replies,
“That is simple. In the Colonies we issue our own money. It is called Colonial Scrip. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers. In this manner creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay no one.”
As a result of Franklin’s statement, the British Parliament hurriedly passed the Currency Act of 1764. This prohibited colonial officials from issuing their own money and ordered them to pay all future taxes in gold or silver coins. Referring to after this act was passed, Franklin would state the following in his autobiography, “In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent that the streets of the colonies were filled with the unemployed…The colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the colonies their money which created unemployment and dissatisfaction. The viability of the colonists to get power to issue their own money permanently out of the hands of King George III and the international bankers was the prime reason for the revolutionary war.”
1809 Thomas Jefferson
in the debate over the Re-charter of the Bank Bill (America);
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
1844 Robert Fitzroy, Third Governor of New Zealand recalled to London by the Colonial Office for issuing New Zealand’s own money supply.
The Encyclopedia of New Zealand 1966;
“Fitzroy then turned his attention to the Government’s finances. When he arrived the total assets amounted to only £2,770, and the liabilities to about £24,000, while the revenue for 1844 was expected to fall short of the expenditure by about £8,000. He made attempts to borrow or to secure advances, but on these proving unsuccessful his only alternative to stopping payment was to issue paper money. In doing so he trusted that the current depression would pass and that the development of the country’s resources would in the end enable it to maintain itself unaided. The first issue of currency debentures was made in April 1844; by November 1845 debentures totalling £37,000 had been issued. Fitzroy took a serious risk in issuing such a large amount, but his confidence was justified – inflationary tendencies were not seriously noticeable and the most grave distress was averted.This did not prevent local grumbling, and in issuing the debentures FitzRoy was fully aware of the British Government’s inevitable disapproval, despite the fact that it had given him no practicable alternative.”…….. It goes on to say………… “Already the Colonial Office had resolved to replace Fitzroy. This was due to a strong agitation in England led by the New Zealand Company, culminating in an attack on Colonial Office policy in the House of Commons in March 1845. The Government bowed to the storm and in May announced FitzRoy’s recall, giving as their reasons his failure to keep the Government fully informed of events, his neglect to raise a militia (which in fact he had done in March 1845), his contempt for instructions in issuing paper money, and his waiver of the Crown’s right of pre-emption. He was also charged with lack of judgment and firmness in handling the native question.”
Michael Joseph Savage’s (First New Zealand Independent Labour Party Prime Minister 1935-40) said in his 1920 maiden speech to Parliament;
“The Government should create a state bank , and use the public credit for the public good as an alternative to borrowing overseas”
Savage backed down when the threats of economic sanctions by the international private banking network started to roll in after Labour were elected as Government for the first time in New Zealand history. Labour did still issue some non interest bearing public credit of our own to fund the State Housing Project in 1936. It mobilised the workforce to unlock the natural resources to build 33,000 houses at the cheapest possible cost to be supplied as a public service before the Tories put a stop to it after WW2 . It was a Labour MP by the name of John A Lee who stuck to his guns and insisted Labour go through with their election promises of monetary, banking and credit system reform. The recently deposed National Party Prime Minister said this below at the time;
From The Cradle To The Grave – A biography of Michael Joseph Savage (New Zealand Labour Party) by Barry Gustafson 1986; Pg 198-9
The National Opposition (1936) was astonished by the use of Reserve Bank credit for housing, which disregarded traditional principles of budget finance. Forbes (George Forbes ex Prime Minister 1930-5 Great Depression era) admitted confidentially to Stewart (William Downie Stewart Jnr – Finance Advisor), “This places them in a unique position, the houses after erection carry no interest on capital cost, and for instance a thousand pound house can be let for 5s per week and be a financial success. The millenium seems to have arrived and it makes one wonder why we had to struggle in the bog, when there was such an easy way out of our troubles, houses, after being built with the highest paid workers in the world, at the lowest cost heard of, makes our policy of orthodox finance seem almost prehistoric.”
Twice Prime Minister of Canada – William Lyon Mackenzie King – spanning most of period 1921 – 1948 said in 1935;
“Once a nation parts with the control of its currency and credit, it matters not who makes that nation’s laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of the sovereignty of Parliament and of democracy is idle and futile.”
