Published on Global Research.ca, by Hon. Paul Hellyer, March 20, 2012.
… What Would Make the Money Valuable?
- Every job that was saved from the axe at one of the three levels of government and every new job created in the arts, medicine, education, the construction of infrastructure, and so on would mean an increase in the real goods and services available to the economy. And each new job created has a multiplier effect. The process would be exactly the same as from bank-created money with one absolutely essential difference – the money would not have to be paid back with interest.
- In addition, each job saved and each one created would mean someone paying taxes who would not otherwise be in a position to do so. So governments at all levels would be beneficiaries. Business, too, would benefit. Each additional person employed would be a potential market for the goods and services that they provide. So it’s a win-win situation.
Aims of the Game:
Q. What are the short and long term objectives?
- A. The first, and most urgent, is to end the recession/depression, first in Canada and then in the rest of the world. The infusion of $10-trillion initially, worldwide, and more if necessary, of what might be called government-created, debt-free money (GCM) will accomplish that.
- The second objective is to put some semblance of morality into the system and stop privately-owned banks from lending the same money so many times to different people. So I am proposing that bank leverages be reduced from their present high levels. (In Canada the Bank Act allows the banks to own assets up to 20 times their capital) to 2 to 1, where interest-bearing assets could not be greater than two times the cash in their vaults or on deposit with the central banks. This could be achieved in seven years or less by federal governments creating enough GCM to keep their economies growing while at the same time buying back about 1/3 of their outstanding debt.
- Once banks have achieved 34% cash reserves, the money-creation function would be shared between government and the private banks 34% GCM, 66% BCM. The biggest achievement of the whole process, however, would be the democratization of the so-called democracies. At the present time there is not one country in the western world that is master of its own destiny – not Canada, not the United States, not Germany and certainly not any of the countries that are mentioned in the daily news. They are all under the control of the international banking cartel, both financially and politically. It’s time for the sham to end and for electors to gain control. Would this be Inflationary?
Q. Is government-created money inflationary?
- A. No more so than bank-created money. It is the total quantity of money in circulation that determines prices, not who prints it. There should actually be less inflation with cash reserve requirements under government control than there has been with the current capital (in)adequacy system.
Principle with Prudence: … //
… The Stakes are Too High to Fail:
The stakes in the world today are so high that they are virtually incalculable!
Many of the earth’s seven billion inhabitants will die unnecessarily from starvation or lack of medical treatment – problems that could be greatly alleviated by money and a more general application of the Golden Rule between rich people and poor people, and between rich countries and poor countries.
Equally profound is the absolute necessity for all humanity to cooperate in arresting global warming before it is too late. We probably have 10 years to convert every car, truck, airplane and home from reliance on fossil fuels to clean energy. It is a monumental task but could be done with a mobilization comparable to fighting a war for survival – which it is for people living in many low-lying areas.
Sadly, however, even the necessity for immediate action is not on the political radar now, and won’t be as long as nation states are more concerned about deficits and debts than they are about the welfare of their people and the future habitability of the planet which is our common heritage.
The entire financial landscape could be changed in a very short period of time. All that is necessary is for nation states individually and the euro block collectively to exercise their legitimate powers as they have a profound moral obligation to do. A miracle is possible.
Victor Hugo said: “Nothing is more powerful than an idea whose time has come.” That time is now.
(full long text).
(Former Canadian Defence Minister Hon. Paul Hellyer is author of A Miracle in Waiting: Economics That Make Sense and Light at the End of the Tunnel: A Survival Plan for the Human Species. All profits from the sale of these two books will be donated to UNICEF.
For a list of recommended books and essays on the urgent subject of monetary reform visit Victory for the World.net or my website PaulHellyerWeb.com.
Global Research Articles by Paul Hellyer).