A Challenge to Banking
SECTION ONE - Dishonest Money
A clear and penetrating analysis of the unacceptable
face of banking
Inflation Is Not
"Money which continually loses value is
dishonest. It acts like a thief." Here we look
at how inflation causes chaos and how to measure
Introducing why interest rates are the wrong
tool to fight inflation and why we need to take
a critical look at the basic mechanics of the monetary
and banking system.
"The very mechanics of the lending process
produces misrepresentation: it is dishonest".
The basics of the lending system and why it is dishonest.
"We have allowed the emergence of a monetary
and banking system which continues to debase the
currency by its own actions." How the money
lending system has, over time, institutionalized
"...the international banking community
will now expand the world's paper money supply to
the point of imprudence." How the money lending
system and the production of money by central banks
create inflation, and the possible consequences
of this system.
"...economic and business cycles are one
of the results of having superimposed the mechanism
of money-lending onto the system for storing and
distributing money." How debt finance creates
economic and business cycles.
"Inflation is the result of the production
of new units of money. It has nothing to do with
the distribution of existing ones." Why current
solutions to the problem of inflation are misguided
and will not stop or even reduce inflation.
"Without change the future of the
Western monetary and banking system looks very bleak
indeed." As we reach the borrowing capacity
of the population the banking system will be unable
to produce the new units of money necessary to meet
withdrawals and maintain customer confidence. Without
continuing expansion the current banking system
SECTION TWO - Honest Money
Corrective proposals flow with impeccable
logic from the analysis in Section 1, including a massive
world-wide conversion of debt to equity.
Before undertaking any change, it is vital that
we have a clear picture of the requirements of sound
money and a sound monetary system. Here we set out
the goal that any change required must achieve.
A Major Re-Think
In this chapter we explore the legal issues that
must be overcome in the change from a debt based
economy to an equity based system.
If we change our existing dishonest monetary
system for an honest one we can actually begin the
process of seriously addressing the problems of
inflation, debt, unemployment and growing government
budget expenditure. Here we outline the practical
steps necessary to go through this change.
We explore the consequences of the conversion
from a debt based system to an equity based system.
The possible changes in social and economic terms
and how we would have to re-assess the value of
money, good and services.
Applied on a world-wide basis, the conversion
of debt to equity can also resolve the international
Converting from debt to equity can have
many positive benefits, to conclude we look at these benefits
and how to ensure they follow conversion.
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