--- F R E N D Z of martian --- More debt-free money stuff - this is an online poll at the Global Ideas Bank. The reason I'm posting it is that I didn't know that the CI had a debt-free money system. And, thanks to http://www.powerup.com.au/~stephenp/the_nature_of_money.htm , I have discovered another source of debt-free money that likely exists in our economy as well as Australia, whose economy the page discusses: that of money spent into existence by the banks to pay wages of their staff, and to buy buildings etc. I'm not too sure about classifying that as 'debt-free' money, though. I would imagine that it would be spent out of 'profits'. 'stephenp' seems to think it is created debt-free, and maybe he's right but AFAIK banks can only create debt-money, and then they are limited to their liquididy ratio (the amount of money they have to actually have in reserve; the ratio used to be fixed at 10%, but that restriction was dropped during Thatcher's reign and currently stands at around 3% - that's the total REAL money in the economy Read the article, decide for yourselves; it's a pretty good, as well as short, description of debt-money. And this is part of the (short) text describing the CI model: "In the Channel Islands it is different. There, the government has not delegated the money-creating powers to the banks. There, the government creates debt-free money and spends it into the economy, rather than lending it into the economy, so that the government has no debt to the banks. Partly as a result, Jersey and Guernsey experience prosperity unknown in many countries. Income tax is only 20%. There is no VAT, inheritance tax or capital gains tax." http://www.globalideasbank.org/BI/BI-42.HTML -- Sent to you via the frendz list at marsbard.com The archive is at http://www.mail-archive.com/frendz@marsbard.com/
