ECONOMICS SIMPLIFIED

We tolerate the most absurd and ridiculous conditions, presumably because we imagine them to be inevitable. This must explain why there is no desire or will to change. We have a status quo, which seems to be set in concrete.

We are at war with each other and without seeming to be aware of what a bloody battle it is. We have commercial warfare with no holds barred. It is a war in which there is no sense of decency, no trust, no honesty and no respect for human life. Millions of people can die of starvation in the midst of plenty and all that anybody can do to prevent their suffering, is to go on their knees and pray that it is not so.

The people of the World now owe perhaps a hundred trillion dollars and maybe a lot more. It is unlikely, that anybody knows the true figure. But it is more money than has ever existed. It can never ever be redeemed. But the interest alone on that amount of debt cannot be paid without borrowing the money to pay it. Thus the world debt gets bigger and bigger, faster and faster.

It is so ridiculous that it appears to be untrue and thus we all ignore it and pretend to ourselves that it is inevitable. The truth is that it is impossible to make an economy function when it uses debt as its currency. Survival becomes all-out war. But there is no common enemy; we are at war with each other.

That war is right there staring us in the face. Have you noticed there is a price war, even between the biggest giants of commerce? Have you seen the price of milk drop to the price of water in the super market and that the farming industry is dying?  

Have you observed how eager finance companies have become to persuade you to use credit for your shopping? Buy now, pay later!

We are all subjected to hard sell in an endeavour to turn us into a consumer society which is increasing credit and destroying the environment.

THE FUNDING of an ESSENTIAL NATIONAL FACILITY, REQUIRED  by the HUMAN RACE, WHEN LIVING in LARGE GROUPS.

Imagine a large community.  Water is the most urgent need of the group. The group is using money as a means of exchange.  It will cost a great deal of money to provide a source of water and to pipe that water to every home.  The group does not have that amount of money to spend but must have the water.  How can the group acquire all that money, which they do not have but must have, and have it now.  In reality they only have one option which is to make the money and spend it.  They cannot earn the money because that amount of money does not yet exist.  The group must find a way to create new money.

To create new money means to bring into existence new money which does not yet exist; to print it, to mint it or somehow to create the new money.

That is perfectly possible because money is man-made stuff and does not exist at all, unless the community knows how to create new money, which the community needed, from the moment it decided to proceed beyond a barter system.

In order to have a source of new money, in whose value the group can completely trust, the new money created for the provision of water, we must spend wisely and well so that not a penny is wasted. The value of the piped water will then pay every penny of its cost.

The discipline imposed by the group in the process of creating new money is very strict.  With the new money  created as it is spent, in the same instant of time, so that the money only exists as a means of exchange, there is never a surplus of money nor yet a shortage of money.  The water supply itself will eventually become a source of more money as it is used by the group to produce the goods and services created by the group for its survival.  That is monetary economics as it must be, fit for purpose and for no other purpose. This must be, because our survival now depends upon the integrity of money. Our existing monetary system has no integrity.

Money has no clearly stated purpose.

Part of survival is having the means of exchange to take us beyond a barter system of economics.  We have chosen money as our means of exchange.  Therefore our survival now depends upon the integrity of money.  The existing monetary system has no integrity.  Money has no clearly defined meaning in the existing economic system and no clearly stated purpose.   Hardly surprising that it is not fit for purpose when we do not even know its purpose.  It is in the resulting financial chaos, that we run into trouble, trying to fund essential services and not knowing how to, without causing trouble and strife.

Money is man-made stuff; it does not exist in nature.  But we do now rely on money in order to do anything.  Any production must be paid for somehow, otherwise the workers starve and nothing can get done.

To have water we must create a reservoir.  Dams can be very expensive; they cost a lot of money.   When the society is in debt there is no money.  New money must be made to pay for the reservoir.  How should new money come into existence? The Treasury should be given the task. The new money must be printed, minted or somehow created by the Treasury and by nobody else.

The new money is then spent wisely and well, under full public scrutiny. The economic growth, which made the new reservoir necessary, will require the Government to produce the new money to service that growth.  By restoring to Government the sole right to create and issue new money and by making sure that the new money created to pay for the reservoir, is spent wisely and well, there is no risk of inflation. 

That is a very different method to what we use today.  Today new money will be credit, issued by private banks, who make their enormous profits by issuing credit as new money. The banks make their profit by providing credit. There is no incentive to keep costs down.  The more money wasted the better.  The way that private financiers  profit from the licence to create new money by issuing new money as credit, is so incredibly extravagant and complex,  that the rest of us have to work at least ten times harder than necessary, to earn what we need to survive.

For example your water bill includes the cost of building the reservoir, for the use of future generations. We shall pay for what they will need.  Admittedly they will need that help because, as things now are, they will inherit from us, astronomical debts that can never be redeemed, but the interest must be paid.  If you grasp this problem with water you will then be able to see the same fraud operating to make roads, railways and sewers, all subject to the same scam. 

Break this barrier to commonsense and reason in the matter of money and our lives will change dramatically for the good of one and all.