The future of finance

JOINT PRESS RELEASE from CompleteMediaGroup and the Forum for Stable Currencies:

Sterling Cash burning into smoke

Sterling Cash burning into smoke


At 11am on Thursday 23rd April in the House of Commons Grand Committee Room, expert speakers will create the debate on financial reform at the Forum for Stable Currencies.

Expert speakers will be advocating economic democracy through freedom from National Debt. They will address the monetary problems connected with the banking crisis and global recession, discuss solutions to the problems and put together a framework for change. The speakers are leaders in the field and include Lord Sudeley, Austin Mitchell MP, Derek Wyatt MP, Michael Grimsdale ACIB (Associate of the Chartered Institute of Bankers), Abdallah Homouda, political scientist, respected journalist and TV commentator.

The event is sponsored by Bartercard, the world’s largest trade exchange. Bartercard enables account-holding businesses to exchange goods and services with each other, saving valuable cash, without having to engage in a direct swap. Bartercard has created a new form of stable currency; the trade pound, which offers one solution to the economic crisis because it allows businesses to trade and grow without the need for cash or credit from banks. This is increasingly important as private banks have replaced money with financial ‘products’ and ‘instruments’ as a medium of exchange; replacing prudence with profits by accumulating toxic assets, packaging unsustainable debts and selling them on to unsuspecting buyers. As a result the banks are suspicious and unwilling to lend or trade with each other.

Please email sabine@3d-metrics.com if you want to attend.

Notes to editor

Cash (notes and coins) and credit make up the money supply. After the Second World War, 53% of the UK money supply was in the form of credit (debt) issued by banks at interest. Now that figure stands at 97%. By making more and more money from credit (or debt) the financial economy is more and more disconnected from the real economy.

This is inherently unstable as the money necessary to pay for interest on credit is simply not there. That means virtually everybody is borrowing at interest to pay off interest as well as capital. The mathematics of compounding interest on interest results in a cycle of boom and bust. Because the money supply being is controlled by central banks, successive UK governments have tended to increase the ‘National Debt’ to fund growth or ‘fiscal stimulus’ packages, rather than make cut backs to repay the debt (unpopular with voters) or print money themselves. [See the Forum’s petition Stop the Cash Crumble to Equalize the Credit Crunch, asking the Treasury Select Committee to organize an inquiry into the money supply. More on http://tinyurl.com/666rwd]

Financial institutions are increasingly using legal enforcement to call in loans, cause bankruptcies, home repossessions, unnecessary litigation and even suicides. Through the national debt they also exploit and constrain the state’s budget, thus limiting political freedom.

The dubious benefits of unfettered market forces and a Western capitalist ideology have faced no serious opposition since Glasnost (openness) and Perestroika (restructuring) effectively brought an end to communism in the former Soviet Union. Even communist China has embraced capitalism; transforming its economy and becoming a global super-power in the process. It seems the world has made a collective decision to accept the inevitable economic losers as well as winners; deregulate and let the so-called free market work its magic… but now the market’s spell is well and truly broken together with the global economy.

At the recent G20 summit in London, the governments of the twenty most powerful nations on Earth decided to throw over $1 trillion at the ailing financial system. Along with previous commitments, this will take the total to over $5 trillion spent on propping up some of the biggest of those banks, institutions and financiers which have failed us so spectacularly.

Yet, instead of trying to paper over the deep cracks in the global financial system, we should aim to rebuild a more democratic and fairer global economy. Fresh thinking and a modern-day Glasnost (openness) and Perestroika (restructuring) are required for a capitalist world. Ushering in a second decade of meetings, the Forum for Stable Currencies will provide the platform for key decision makers to discuss the hows and whys of creating a better future.
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8 responses to “The future of finance

  1. On Wednesday 21st I will be presenting a solution to the problem being addressed by the House of Commons. The presentation will be to the ACT Legislative Council in Canberra Australia. The solution shows how we can finance community infrastructure development without requiring the government to go into debt. It shows how we can finance infrastructure by getting the infrastructure to pay for the investment after it is built.

    Please visit http://stableproductivemoney.wordpress.com/2009/04/10/presentation-to-the-act-legislative-assembly/

    to see how it can be done. The particular problem we are addressing is the reducing greenhouse gas emissions but the approach can be used for any asset building community infrastructure – and it is very very easy to implement if the political will is there.

    It can solve Britain’s monetary issues and as a side benefit reduce greenhouse gas concentrations in the atmosphere.

    Wish I could be there to participate in the debate but perhaps there is someone who can put this solution?

  2. Well done, Kevin!

    Keep spreading positive solutions!

    With best wishes for more and more power to your creative elbows,
    Sabine

  3. Have a look at my website where you will see a file called “SCANDALOUS”.

    In that file it is shown that AT LEAST 50% (probably nearer to 80%) of everyone’s income is paying INTEREST to the banks.

    WHEN we abolish USURY, we will be working less than 50% of the hours for the same standard of living, while also doing less than 50% of the damage to the Earth, and have all that extra time to decide how to use all our splendid and amazing technology for the benefit of Humanity AS IT WAS INTENDED BY IT’S INVENTORS !

    ps. any animal at the top of it’s food chain spends about 30 minutes each day in providing itself with food and shelter… we spend more than 8 hours each day….!

  4. Very useful informations about these subject. I have found them with googling and you seems number one of these subjects ! . . .

  5. We have been developing the idea further and now believe that the solution to financial woes is remarkably simple and can be achieved incrementally without governments having to be involved – although it is best if they are. Communities or companies or banks themselves can all participate and use the existing fractional reserve system to create interest free money for specific purposes. If we create money through interest free loans then banks will find it unprofitable to create new money with interest bearing loans. Banks will still do their normal business of lending existing money but they will not be tempted to leverage their deposits and create extra money. The reason that this is so is because people will move to banks who offer interest free money for trading – like the barter card – and communities will create interest free money to be invested in parts of the economy where asset bubbles are starting to form. The fractional reserve system can be used to do this.

    Financial derivatives will soon become unpopular as a way of hedging risk because why create interest bearing money when simple insurance can do the job.

    Banks will be able to make money from this because the interest free money they create can be made to be risk free and they can still make money from increased transaction fees. The first banks on board the system will soon gain regular customers so it is expected that the approach will spread rapidly once it is introduced.

    The book by Stephen Zarlenga “The Lost Science of Money” gives the historical reason why this approach of interest free loans for new productive investments works. Zarlenga has found that throughout history currencies where the token is worth EXACTLY what it says it is worth are stable currencies. Stable means that increasing the money supply does not cause inflation. Currencies where at the point of creation the money has intrinsic value more than the token value will fail. If we attach interest to newly created tokens then the system will fail. We can still attach interest to existing tokens. It is the attachment of interest at the time of creation that causes the problem.

    We can make it even better by giving interest free loans to address areas of market failure such as the increase in green house gases in the atmosphere which is a market failure of the energy and land use industries that do not consider the externalities of burning fossil fuels.

  6. Of course, of course, of course, Kevin!

    Easier said than done, but GO FOR IT!!!

  7. Great post! I learn much of new materials Thx No guts, no glory, no brain, same story

  8. Here is a copy of letter I have sent to the Australian Finance Minister. I do not expect an answer but if it goes to enough people then perhaps one will see the possibilities and ask for some more information.

    http://cscoxk.wordpress.com/2010/05/18/letter-to-lindsay-tanner/

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