Monetary Reform

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"Global Justice Movement"

The Monetary Reform Group addresses itself to all groups wanting to improve society. It wishes to encourage them to look beyond themselves, to be For something rather than Against, and to unite on what they have, or could have, in common.

While endeavouring to discuss all aspects of monetary reform, the Group invites all groups who want a fairer and better society, including a guaranteed income security for all, to press the Four Demands on government. The First Demand is only for the recognition of a fact but, even if only the First Demand is achieved, a big breach will have been made in the wall of stale, old thinking and the way will be open for the new thinking and policy to create a better world.

Four Demands for a non-inflationary money system

That

*
There be open, regular and public acknowledgement by government, economists and academia that the present banking system is an unjust monopoly that creates 95% of the money supply as interest-bearing debt.
*
Interest-free money (i.e. government-issued repayable money created free of charge beyond administrative and other necessary cost) be used for capital investment needed by the public sector thus enabling such investment to be one half, even one third, of the present cost.
*
Interest-free money (i.e. government-issued repayable money created free of charge beyond administrative and other necessary cost including loan insurance) be used for private capital investment which will create ownership stakes and property incomes for all income groups, especially the poor.
*
Interest-free money (i.e. government-issued repayable money created free of charge beyond administrative and other necessary cost including loan insurance) be used for loans to start-up and small business.
Explanatory text

At present widespread debate on monetary reform is not possible because the subject is maginalized, even suppressed. Nevertheless, as a first objective, the Monetary Reform Group believes that debate can be opened up if all groups press for open, regular and public acknowledgement by government, economists and academia of a fact -- that 95% of new money is created out of nothing by the banking system which then adds interest (as well as charges for administration).

Once that fact is properly recognised (as opposed to being ignored, obfuscated or minimalised), the question arises as to why money should not be issued by government without having interest attached. For example, interest-free money (defined as "government-issued repayable money, free of charge except for administrative and other necessary cost") could enable a public capital project to be one half, even one third, of the present cost.

Similarly, such interest-free money could be used for private capital investment if it turns formerly capitalless people, particularly the poor, into new owners of capital. Using known techniques developed by binary economics, Shann Turnbull, Jeff Gates and others, every individual in a society (in work, out of work, ill, retired, young or carer etc.) could come to own a big capital stake and have the benefit of a considerable, independently-earned income.

And if interest-free money can be used for public capital investment and wide-ownership private capital investment, there is no reason why it can not be used for start-up and small businesses.

Therefore, stemming from acknowledgement of the 95% fact, much new and constructive thinking becomes possible and it need not be limited to interest-free money. Given the recent experience of Japan, negative interest money (i.e. you are paid a percentage rate to take the money) is a possibility. Other possibilities might be debt-free money (non-repayable money issued without interest being attached); stamp scrip money (money which is designed to lose its value unless a paid-for stamp is put on it, resulting in an incentive to spend the money before it loses value); and even competing types of money coming from different bodies.

However, remembering the need to stimulate debate and for simple, clear, basic policy the Group has decided to start by proposing policy which is acceptable to many groups, not open to obvious attack, and is patently non-inflationary. That policy is encapsulated in the Four Demands set out as a way of focussing the minds of everybody on issues and possibility.

Implementation of the four Demands will create

Healthy economies and societies in which:--

i) All individuals attain a sturdy independence becoming economically productive to the extent necessary to satisfy their reasonable needs.

ii) There is balanced growth which is also a green growth because
a) individuals involved in practices destructive of the environment can be given another way to earn, and
b) the economic efficiency allows for the introduction of more costly, but greener, processes.

iii) The economic (and hence social) status of women will be enhanced.

iv) There is a solution to poverty through a guaranteed income security for all.

v) There is a foundation for the ending of National and Third World debt and the stimulation of economies and societies no longer in hock to outsiders.

vi) Democracy will be deepened because all individuals will have much greater control over their daily lives.

vii) There is an economic foundation for the voluntary control of population levels.

viii) Everywhere exists a practical basis for a new honesty, optimism and generosity of spirit.