View Single Post
  #1  
Old 12-20-2004, 03:47 PM
john john is offline
Member
 
Join Date: Nov 2004
Posts: 99
Default Why a public Central Bank would be great.


Simple description of how would work a Central Bank if not in the hands of the private bankers:

1. On behalf of the government, the public Central Bank is printing as much money as necessary for:
- the annual public budget;
- the private economy investments.

2. The sum necessary to the public budget is not charged with interests, contrary to what does a privatly owned Central Bank (generally 8% but often much).

3. The sum necessary to the private economy is lended:
- directly to finance big projects in real economy (not in speculative financial economy), at a low rate of 1% or 1,5%;
- through the private banks, at a non-usurary rate of 2,5% or max. 3%.

4. When lended through the private banks, these have to pay back an interest of 1% or 1,5% to the public Central Bank. The difference between their own interest of 2,5% or max 3% makes their non-usurary profit.

5. Every year, the money which was lended by the public Central Bank to the private enterprises or to the private banks is paid back to the Central Bank with the 1% or 1,5% interests covering the public costs and risks of these lendings. These paid-back sums are destroyed in order to avoid an inflation due to excedentary money in circulation ("excedentary" is relative to the current national production-consumation balance).

6. The supplementary sum necessary to the individuals and the private enterprises to pay the 2,5% or max. 3% interests to the private banks and the 1% or max. 1,5% to the Central Bank if directly borrowed from it is coming from the money spent by the government (its annual budget) in the form of salaries and furniture`s buying.

As main results of this system:

- no more inflation as no more debt accumulation in the private economy;
- no more unemployment as the enterprises can invest in their projects without being struggled by usurary interests and without being obliged to borrow a lot of money just to pay back the previously borrowed money`s interests;
- no more non-stop increasing national debt as the government don`t have to pay back usurary interests and interests on the interests to a privately owned usurary Central Bank.

Sorry for my poor english, folks.

Reply With Quote