Six postulates designed to lead to a wealthy nation.
- There never is a shortage of money -- only the national will to create it.
- There is an inexhaustible demand in every country for wealth of all kinds.
- A worthwhile project is herewith defined as one which generates more wealth than the monetary cost of the project.
- A sovereign nation can create any amount of temporary money through loans.
- Once those loans are paid back, the money is extinguished -- but the generated wealth remains.
- That wealth naturally creates more wealth (subtract depreciation) every year.
- Wealth -- those things that are valued by the people of the country.
- Project -- a human effort which produces products and services. Examples of products
and services are machinery, tools, homes, factories, food, clothing and recreational facilities
- Money -- legal tender or currency.
- Temporary loan money -- that money which is (a) created by the government or banks in (b) the form of a (c) well collateralized loan, under (d) a legal contract and a (e) downside leverage banking system, wherein the loan money is extinguished when it is paid back.
- Downside leverage banking system -- a banking system in which the lending bank has a downside leverage of 10 to 1 -- wherein, for every dollar lost through a bad loan, the lending bank must reduce its outstanding loans by $10.