Ending current banking practice
The money market and creation of credit monopoly of private corporations must be broken. Public investment must refocus on productive economic sectors and national wealth strategies must be built around local and national economies, not corporate globalism. The following reforms are aimed at making this possible:
A public institution will assume the responsibility for the nation’s credit creation (loans), free of interest charges. Money’s primary role as a means of exchange, rather than wealth in itself, will be affirmed. Individuals and businesses would apply to this institution for the capital or funds needed for businesses and mortgages.
A central bank responsible for fiscal policy by controlling interest rates on a discretionary basis will be phased out. If a central bank under these reforms is still required it will only exist to be a bank of ‘last resort’.
The nation’s real wealth, found in what is produced, the services provided, resources, innovation, labour, human potential achievement and other measures of human ‘happiness’ will replace the use of GDP as the benchmark for national economic well-being.
The quantity of money in circulation will be sufficient to meet the real total costs (the price) of the nation’s goods and services. Given the changes to the banking and taxation system an annual national dividend paid to every natural born citizen, or only to those unemployed or retired should be considered if it is necessary to maintain a balance between the supply of money and all available goods and services. This dividend would be distributed through the credit creation body and not sourced from taxation.
The practice of mortgagee sales on family homes or enforced business asset sales, when loan repayments cannot be met, due to unforeseen market conditions, may only be implemented after a generous period of re-adjusted payments, or repayment furloughs.
To facilitate the shift to much lower debt generation all existing public debt (c.f. Reform Group 3) will be retired or reduced. Private mortgage, personal loan and credit card debt under the existing private banking regime will be retired where the interest returned on the loan’s principal has already exceeded 10%.
Where an individual, family or small business is in serious financial difficulties their financial affairs may voluntarily, or by order of a people’s court, be subject to financial oversight and management by suitably qualified people.
There will be an absolute prohibition on issuing debt, for which the public is responsible, to ‘bail out’ large corporations. Where bail outs have occurred the corporation receiving this public largess will be required to repay it in full.