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<DIV class=hr style="BORDER-RIGHT: #ccc 1px solid; PADDING-RIGHT: 0px; BORDER-TOP: #ccc 1px solid; PADDING-LEFT: 0px; FONT-SIZE: 0px; PADDING-BOTTOM: 0px; MARGIN: 5px 0px; BORDER-LEFT: #ccc 1px solid; LINE-HEIGHT: 0; PADDING-TOP: 0px; BORDER-BOTTOM: #ccc 1px solid; HEIGHT: 0px" readonly="true" contenteditable="false"></DIV><B><SPAN style="FONT-WEIGHT: bold">From:</SPAN></B> "ideasinc@ee.net" <ideasinc@ee.net><BR><B><SPAN style="FONT-WEIGHT: bold">To:</SPAN></B> P2P Foundation mailing list <p2p-foundation@lists.ourproject.org><BR><B><SPAN style="FONT-WEIGHT: bold">Sent:</SPAN></B> Wednesday, 21 September 2011, 15:20<BR><B><SPAN style="FONT-WEIGHT: bold">Subject:</SPAN></B> Re: [P2P-F] Why we can afford Climate Change...<BR></FONT><BR>Robert et al,<BR> while Ann Pettifor is generally correct about how central banking works, <BR>she is wrong or omits a several important details. The privatized version <BR>of central
banking under a fiat sovereign currency has only sort of served <BR>our collective and common needs and it is actually not very functional at <BR>all. As she describes it we have a "credit" based system. The use of the <BR>word "credit" is often used to mask the reality that "credit" is debt by <BR>another name.<BR><BR> She also omits entirely describing the major difference between credit <BR>(debt) based money issued by a privatized banking system which issues <BR>credit as compared to the effects of currency issued debt-free by a <BR>sovereign government in the interest of sustaining and developing <BR>societal/sovereign infra-structure. Under the privatized issuance of debt <BR>based currency the privatized monetary system accumulates both the <BR>interest attached to currency as a credit and it makes back the entire <BR>principle as well. Adding together the
compounded interest and the <BR>principle of the debt (aka credit). This makes the related debt to be <BR>HUGE!!! To provide this free rent on the franchise granted to privatized <BR>central banking, other than related overhead costs of operating a private <BR>bank and central banking system, those who sign onto the credit/debt <BR>issuance of currency units have to go out an essentially strip the economy <BR>and the commons of resources which by the fractional reserve and <BR>leveraging ends up being many times the original debt/credit. When a local <BR>or central government uses bonds to credit that currency it is acquiring <BR>debt to private investors including the banking issues this the related <BR>debt/credit. This result is very, very different under a sovereign, fiat, <BR>asset based currency process.<BR><BR> She is quite right about the feeding credits into the
demand side of the <BR>economic ledger IS how saving are established for the general population. <BR>Having the sovereign government go into credit/debt to develop <BR>infra-structure needs, is poor strategy compared to currency issued on a <BR>debt free basis. Credit issued as loans either to the central sovereign <BR>government or to corporations and private individuals (think "mortgages" <BR>as a contractual agreement of debt/credit. If currency is put into <BR>circulation on a debt-free basis by the sovereign government, the the <BR>private investors, including banks will not acquire the huge returns <BR>achieved for private interests by way of the debt basis of the issuance of <BR>currency. She does not distinguish her "supply-side" aka consumer demand <BR>side of the economy and supply side to the benefit of the privatized <BR>banking systems. This will make her presentation
seems very much like <BR>"supply-side" economics, in service to plutocracy. This lack of <BR>distinction is problematic in the details of how the issuance of currency <BR>can serve the interests of the commons in many ways.<BR> <BR> Trusting banks to invest in the de-carbonization of our industrial <BR>cultures, under the private credit/debt basis of issuance, will cause <BR>those investments to go where the return on that investment will be <BR>highest. If a high private return on the "investment" is somehow <BR>guaranteed by the government, then the debt load will be higher, compared <BR>to what it would be under a process where the sovereign government acts as <BR>the primary steward of the commons and the currency credits are issued <BR>debt free.<BR><BR> It is this sort of poorly informed jumble packaged along with very
<BR>attractive objectives, ends up adding to the net public confusion of how <BR>monetary systems and a functional approach to fiscal policy could operate <BR>in the interests of the commons and toward sustainability.<BR><BR> Ask questions here, if you don't understand some of these details. I will <BR>be happy to respond. The bottom line issue is that the commons and <BR>sustainability will be vastly better served by a fiat, asset based(aka <BR>debt/credit free) currency issued by a sovereign government. At least she <BR>has some content that points in the right direction, but then she also has <BR>significant content that ends being poorly informed and even likely to <BR>have a major net negative impact. There also seems to be no implied or <BR>actual analysis of how the globalized,centralized, privatized banking <BR>conventions have produced the current melt down. I half
expected her to <BR>also advocate for further deregulation of the privatized currency commons.<BR><BR>as we go, Tadit Anderson<BR><BR> <BR><BR><BR><BR><BR>Thank you Taditt. I do not think Ann Pettifor is as well <VAR id=yui-ie-cursor></VAR>informed as you but her basic point is very important. Moreover, I have not fully read your comments properly...maybe later when I have the time. RS<BR><BR><BR>On Wed, 21 Sep 2011 07:27:05 -0400, robert searle <<A href="mailto:dharao4@yahoo.co.uk" ymailto="mailto:dharao4@yahoo.co.uk">dharao4@yahoo.co.uk</A>> <BR>wrote:<BR><BR>> People are at long last waking up....to a more intelligent approach to <BR>> financing......There is hope yet for humanity...!!<BR>> <A href="http://www.youtube.com/watch?v=UMEsWxrnAY4" target=_blank>http://www.youtube.com/watch?v=UMEsWxrnAY4</A><BR>> RS.<BR><BR>_______________________________________________<BR>P2P
Foundation - Mailing list<BR><A href="http://www.p2pfoundation.net/" target=_blank>http://www.p2pfoundation.net</A><BR><A href="https://lists.ourproject.org/cgi-bin/mailman/listinfo/p2p-foundation" target=_blank>https://lists.ourproject.org/cgi-bin/mailman/listinfo/p2p-foundation</A><BR><BR><BR></DIV></DIV></div></body></html>