THE BENEFITS OF MONETARY REFORM

The first thing to realise when thinking about money is that money is man-made stuff. We have as much money or as little money as we decide. But we know we must avoid inflation.

NO MORE INFLATION

It seems to be well accepted, that inflation is too much money chasing too few goods.  By paying more money than something is really worth, we inflate the price. But also by using credit instead of money, I estimate we pay more than double what we would pay if we had money with which to pay.  Credit is not money but is a debt we create when we accept credit as a loan. It is a loan that must be redeemed with real money, paying interest in the interim. The lending and borrowing of credit, becomes the real source of inflation, but is not seen as such. I have 

calculated that it costs us, at least twice the stated value of the credit provided by the bank, in order to redeem the “loan”.

What is not visible in the existing monetary system is the mechanism  by which new money is brought into existence. It is laundered or processed by the borrower, who must earn the real money needed to redeem the loan and to pay the interest on the loan in the interim.  Laundering credit is expensive and results in new money causing inflation with a double whammy.  It goes like this.  You are offered a mortgage with which to buy a home. Which means you agree to accept credit with which to make the purchase. Then you earn real money to pay the interest whilst you earn more real money to redeem the loan.

Over 20 years your total payments are twice the cost of the home. None of all that money existed, before you requested the mortgage.  The original credit represented nothing.  It was merely a promise made by you to earn all that real money to redeem the “loan” of nothing. And to pay real money as interest.  Borrow new money into existence and then pay twice.  That is how the credit industry causes inflation and that explains why interest rates control inflation. At present if new money is issued as credit too fast, the rate of borrowing can be slowed by high interest rates.  In the current system, if new money is in short supply, we can have lower interest rates to make new money cheaper, which increases the release of new money as credit. That is, it increases overall debt.

This revelation shows very clearly how a thoroughly exploited, dishonest monetary system is the cause of inflation.  Another example is the credit card. If you use your Barclay card Visa to purchase goods and the time to pay expires you start to pay 19% interest per annum. If you use the card in a cash machine and run out of time you find yourself paying 27.9% interest per annum.

When you stop to think of the ease with the which people can be enslaved by debt, it is quite obvious that we are looking at corruption in high places. It also reveals the importance to everyone, of restoring to Government, the sole right to create and issue new money. It also helps us to see how it must be done correctly.

“The Government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the Government and the buying power of consumers .  By the adoption of these principles,  the taxpayer will be saved immense sums of interest. Money will cease to be master and become the servant of  humanity” Abraham Lincoln

Having seen how to avoid inflation we can now see how to determine the correct speed with which to issue new money in order to service economic growth. The sole purpose of money should be as a means of exchange. Therefore money must stand proxy for the value of what is being exchanged. That value is determined by the cost of bringing goods or services to the market place, at a price which will assure their future availability.  By measuring the rate of increase of this trade, we get the rate at which to increase the money supply.

There is nobody to decide this figure for us. We work it out for ourselves.  Of course this does not apply to the individual but it does apply to the Nation. My definition of a Nation in this context is a group of people who have their own independent Government.  “Independent” is the operative word.