Send a Tweet
Most Popular Choices
Share on Facebook Share on Twitter Share on LinkedIn Share on Reddit Tell A Friend Printer Friendly Page Save As Favorite View Favorites
OpEdNews Op Eds

The Great Unbinding Part 3.3

By       Message Derryl Hermanutz       (Page 1 of 7 pages)     Permalink    (# of views)   70 comments

Related Topic(s): ; , Add Tags
Add to My Group(s)

Well Said 3   Valuable 3   Must Read 2  
View Ratings | Rate It Headlined to H2 7/23/15

Author 64335
Become a Fan
  (47 fans)
- Advertisement -
The Great Unbinding Part 3.3

From cast off chains
cast off chains
(Image by StooMathiesen)
  Permission   Details   DMCA

- Advertisement -

Milton Friedman advocated using overt Treasury/central bank-issued money to fund a negative income tax, to provide a basic minimum income for poor people. I have advocated -- in the tradition of CH Douglas's National Dividend -- using overt money to fund a monthly basic income payment to everybody, no means testing at all.

- Advertisement -

Bill Gates, you, 'the poor' -- every citizen over 18 with a SS number receives the same monthly direct deposit in their bank account, via the central bank anchored money payments system.

Indebted individuals and households -- and small businesses whose owners self-finance with personal debt -- could use the monthly income payment to pay down their household debts. Because the basic income payments would have to be made through the banking system, the banks could directly "take" the amount received by debtors, and apply it to paydown of due and overdue loan accounts.

The overt money issuing program is fundamentally a debt paydown program and a financial and economic stabilization program. Its purpose is to bring the money system into closer alignment with the value-adding real economy that is activated by the spending of money.

- Advertisement -

For debtors, debt paydown would be automatic, not "optional". Non-debtors would be free to spend, save, invest or give away their monthly payment, as they choose.

By creating overt money, and giving that money to the banks' debtors, you bail out the insolvent banks by bailing out their defaulting debtors. When a failing bank's debt-assets are restored to "performing" status (loan principal repayments and interest are being paid on time), the bank no longer suffers illiquidity problems, and its solvency is not in question.

Next Page  1  |  2  |  3  |  4  |  5  |  6  |  7


- Advertisement -

Well Said 3   Valuable 3   Must Read 2  
View Ratings | Rate It

I spent my working life as an independent small business owner/operator. My academic background is in philosophy and political economy. I began studying monetary systems and monetary history after the 1982 banking crash that was precipitated by (more...)

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon Share Author on Social Media   Go To Commenting

The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Related Topic(s): ; , Add Tags

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Free Enterprise vs Corporatism

Banksters vs Humanity: Round 14

Size Matters: Local Democracy vs. Global Plutocracy

The Physics of Spirit

Economic Democracy vs Bankster Plutocracy

Corporations are not free market enterprises