MONEY OR YOUR LIFE.
Chapter Twelve.
CLEAN MONEY.
I have said earlier that the cure for all our difficulties with money is so simple, so direct and so easy to understand that it will be dismissed as simplistic, unrelated to reality and a pipe dream.
Just pie in the sky!
But if you have read this far and now have some measure of agreement with what is being said, you might possibly view the remedy with delight.
For the remedy is delightful, it solves everything, and is so obviously correct that you will have a terrible job believing that it needs doing.
I can hear you say "well that is surely the way it is already".
Anyway take a look at the cure and see if you can understand its tremendous importance.
Here it is.
Restore to our Government the sole right to create and issue new money into circulation.
That is all that has to be done and everything will change, but everything.
The major objection that I have heard to this reform is as follows. This will put far too much power into the hands of our Government.
At least the objection reveals the fact that people know that the source of power, at present, lies elsewhere than the Government, but don't ask them where, because they don't know.
All they know is that Governments cannot be trusted with power. Although they do not admit that democracy doesn't work, they pay lip service to democracy but condone the creation of something else.
Personally I cannot see the sense of entrusting all that power to an unknown hidden source.
They who issue a nations money have power over that nation.
We do not know who has that power at the moment, but we seem to believe that things would be even worse if the power were given to our Government.
We get the sort of Government we deserve and when we permit our Government to slide under the power of unknown, unelected criminals, then we get a Government that is the source of endless complaint.
When we restore to our Government the sole right to create and issue our currency into circulation, we shall empower our Government to keep its election promises and change the whole political system for the better.
This may be difficult to believe, but when we fully empowered our Government in the last war, our Government did a pretty good job for us.
The first step to be taken in curing our sick economy is to formulate an accurate and serviceable definition of money.
Money is an idea in which trust is established that its value truly represents the value of goods and services produced at a price which makes their exchange in the market place financially viable.
Thus the yardstick by which we value money are the goods and services for which money stands proxy.
Therefore when the production of goods and services and their exchange in the market place increases by a hundred million pounds, the Government must spend a hundred million pounds of newly created money into circulation.
Statistics will be kept which very accurately determine this figure.
You might imagine that the Gross Domestic Product is the statistic we need to tell us the value of the goods and services successfully exchanged in the worlds market place by the nation.
And so it should be, but it isn't.
If you look to see how this statistic of the Gross Domestic Product is calculated you will find that instead of giving the value of what is created as products by the nation , what the statistic tells is how much it cost to produce those products.
It is quite obvious if what is produced is not wanted and cannot be sold in the market place, then it is not what we are looking for in designating a yardstick by which to value money.
So we shall need a new statistic that is not currently kept and the compilation of the requisite data will happily engage the services of redundant civil servants who will be out of a job when we outlaw the practice of punishing people for working.
When we know the total value of the goods and services produced and exchanged in the market place by the people of this country, at a price which makes their continued creation financially viable, we shall know how much money needs to be in circulation in order to service that trade.
We know that if the economy is healthy the total sum will increase year by year and the provision of that increase will give to the Government a new source of revenue.
Beware anybody who tries to make this basically simple process complicated. It is basically simple and can be kept simple so that everyone can understand how to assess whether it is being done correctly.
It is because our monetary system is currently so complex and secretive that the citizen is incapable of taking responsibility for ensuring that our monetary system is correct, honest and ethical.
When the Chancellor of the Exchequer gives his budget he will tell us the value of what we produced and sold in the year, how much that increased over the previous year and how he proposes to spend the money needed to increase the money supply to service that growth in our trade.
If he is wise he will give first priority to smoothing the road for more prosperity.
Thus we see that the issuance of money is precisely determined by having an accurate definition of money.
Because the definition of money as here given is not in the existing economic texts, the subject of economics as now studied does not work in practice.
For a body of knowledge to qualify as a science it must be able to provide predictable results.
If we wish to flourish and prosper as a nation and free ourselves from such problems as unemployment, high taxation, poverty traps and uncomfortable economies, then we need a science of economics to replace party political theories.
An ideology is no substitute for a science. It is using guesswork or wishful thinking to fill gaps in our knowledge.
A start can be made by introducing an accurate definition of money which will radically change the whole subject.