Movement for Non-credit Money

No Gravatar

Today, money is put into circulation in the form of credits.

Such credit money is always in short supply.

Increasing the money supply is necessary both because of increases in production and for making up for the money lost due to slowing down of velocity of money circulation.

The required additional quantity of money in circulation is definitive (final), because it is intended to stay in circulation permanently. This cannot be credit money, which is in circulation temporarily, because credits must be returned.

If the rate of increase in quantity of credit money in circulation is such that it creates such an inflation where the rate of increase in quantity of credit money in circulation is greater than the rate of price increases, then the difference in these rates is really non-credit money, which functions as the necessary additional quantity of money in circulation.

If all the necessary additional quantity of money in circulation were immediately emitted as non-credit money, i.e. gift, inflation would disappear.

Movement for non-credit money proposes that the National Parliament issues a Money Law, containing the following:

  1. Banks may issue credits only up to the amount of collected savings.
  2. The creation of new money by issuing credits above the amount of collected savings is prohibited.
  3. The necessary additional quantity of money in circulation, which is printed in the Money Printing Institution, is deposited to the account of the Pension Fund.
  4. Money is put into circulation by paying pensions from the account of the Pension Fund.

Such a mode of money emission secures endless price stability, without inflation and deflation.

Contributions (or taxes) for pensions are thus canceled and the economy is less burdened.

By selling goods to pension beneficiaries, producers secure profits, as pure accumulation for further increase of production (without having to take credits).

Next article: World Order of Non-credit Money

January 21, 2009 · Stojan · No Comments
Posted in: 08. Movement for Non-credit Money