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Public Banking. Adequate Rational Money.
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John Gelles
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Oct 27, 2009 06:56 PST
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All central banks have the function of creating adequate rational money
to assure liquidity, avoid deflation and forced unemployment, and avoid
hyper-inflation. Such money is not "funny money". What is funny is that
today's central banks have unlearned how to perform these functions.
What we have in Europe and America is "funny taxes". The money necessary
for investment in projects and programs that cannot be funded by rapid
profits via immediate sales within the private sector is not given to
nations by central banks as a central banking function. Rather, an
attempt to find that money via taxation is first made.
These taxes coexist with new money creation. They keep the national
economies away from full employment. People on the dole without the
dignity of work and an identity based on work, are "funny" and miserable
on account of this.
Taxes should be avoided by compulsory saving if excess money in
circulation a problem.
How many central banks should any one nation use? Who should have the
authority to make savings compulsory? Must savings be protected from
inflation, along with national pensions? Must we have a citizens income
along with parliamentary spending and central bank lending to commercial
banks -- public and private?
These questions are unanswered. None are funny. I imagine there are not
unique answers. Many different funding structures and processes would
work. But all must be seen as purposeful and in need of human design and
re-design until they work well enough meet humanitarian needs, including
currently, the need to protect human rights with the force of arms.
James wrote:
| | I have several times pointed to the Commonwealth Bank of Australia >as
an example of how useful and profitable a publicly-owned bank can >be.
...
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| | Incidentally, we would not need any elaborate legislation. We would not
have
to play any games with "funny money" or anything like that. We would not
have to go "socialist" or change any of the fundamentals of our "free"
capitalist economy. ...
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| | All we would have to do is to return to the Banking Act of 1944 and the
Commonwealth Bank Act of 1944. They would need a bit of touching up. We
would need to separate the commercial function of the Commonwealth Bank
from
its central-bank function; but we did that in the early 1950s, so that
sort
of exercise has successful precedents for us to follow.
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| | What would it cost the Australian people?
Practically nothing ...
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| | We would be back to making our dreams come true.
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