GLOBAL TABLE APRIL 21
12-2 at the SES
Possibly attending – John Courtneidge [Canada]; Robin Upton [Bangladesh]; Ben Curtis; Margaret Oluk.
IMMEDIATE TOPICS:
1. Those attending the Table recently have been discussing a case for Interest-Free Credit. They argue that, given the acceptability of monetary reform per se, interest-free proposals are preferable to the debt-free issuance of currency for several reasons. The latest draft is in this form:
The table argues that interest-free monetary reform proposals are preferable to debt-free policies for several reasons. Firstly, debt-free issuance implies that there is no specific limit to the amount of currency that could
be created, which increases the likelihood of moral hazard i.e. the lack of suitable sanctions to mitigate irresponsible spending or profligacy. There may, for instance, be a lack of adequate constitutional safeguards preventing an ambitious state from constructing luxurious state buildings or increasing the wealth of politicians. Governments do not, unfortunately, have a very good historical track record in this regard.
Secondly, debt-free issuance can be considered fiat money, since it remains in circulation rather than being retired in the manner of credit-money. This means that there could be a tendency for economic agents to hoard part of the money-stock, thus creating circulation blockages to the detriment of an efficient real economy.
Thirdly, the interest-free issue of credit-money is, arguably, less likely to be inflationary. In contrast to the present system, it is posited that both of the monetary reform proposals are likely to mitigate inflationary pressure since there is no interest to pay. However, given that interest-free money is ‘created for purpose’ and then retired from circulation, there is less likely to be an excess of monies in circulation that could trigger aggregate demand (otherwise not occurring) and subsequently raise prices.
Finally, given the realpolitik of the political process, debt-free proposals are too revolutionary and threaten monetary vested interests with virtual extinction. It is our conviction that interest-free issuance of currency [or money’?] is more likely to resonate with the values of diverse groups in society, ensure a future for the private banking sector and achieve a general political consensus for reform. In addition, the interest-free proposal outlined below is reasonably close to the proposals that Keynes, popular in many circles, put forward in the thirties.
Your comments are welcome.
2. Finance Innovation Lab – Report
3. ‘Against Usury – resolving the economic, ecological and welfare crisis.’ and other publications – Report – the theme explored at St James Piccadilly last Sunday [Ex+EX =U]
4. Bank of England exchnage diverted to Office of Fair Trade
5. The Network Project – report of Saturday’s meeting. http://www.thenetworkproject.org.uk/workshops/100417.htm
6. The Coming European Debt Wars – EU Countries sinking into Depression By Prof. Michael Hudson www.globalresearch.ca/index.php?context=va&aid=18545
7. Call4Reform nearing its launch
8. June 24th CEJ /NEF/Equality Trust extension in collaboration seminar
and so much more as opportunities abound………
ITEMS IN FROM OUR TABLE’S LIST:
– Latest from Tax Justice network for those who don’t see it: http://www.taxjustice.net/?s=April+2010
– Robin: “I’m suggesting that some people actually believe that you can own something when you have not earned it. (libertarians and austrians) Or that others believe no one owns anything that has been earned (socialists) . Both are morally wrong. Both these ideologies are blocking progress. Neither ideology is prepared to think further about it.”
– Final report of the Commission of Inquiry into the Future of Civil Society, commissioned by The Carnegie Trust and chaired by Geoff Mulgan. www.futureforcivilsociety.org
– Good news_ SIMPOL attracting many pledges among parliamentary candidates.
– RedPepper.org.uk running strong articles on monetary reform
– A very good question. Are they conning us again? http://www.guardian.co.uk/commentisfree/2010/apr/17/election-deficit-denial-public-payback
– 26-30 April “International Union for Land Value Tax and Free Trade” is being held as the School of Economic Science.
– Mathew Slater from Birmingham :
www.communityforge.net and http://drupal.org/project/mutual_credit
– This may be of interest, and hopefully some discussions might come about fairly soon on the institute of new economics thinking Facebook website: http://www.facebook.com/home.php?#!/pages/Institute-for-New-Economic-Thinking/233501527950?v=app_2373072738&ref=ts Robert Searle – currently link not working – see: https://www.facebook.com/INETeconomics/ – https://ineteconomics.org/about – and http://wiki.p2pfoundation.net/Transfinancial_Economics
– For a rather different view on the current political scenario see:http://www.the-free-lunch.blogspot.com/ Charles Bazlinton
– May be of interest…the move towards a cashless society…http://www.paymentscouncil.org.uk/
– [apologies for cross-posting]
The World Bank is currently consulting on a new energy strategy, due to be finalised in early 2011. We believe this offers an opportunity for a shift towards a limited but catalytic role for the World Bank in ensuring energy access for the poor and supporting the transition towards a low carbon future. But only if the World Bank commits itself to conversion into a much more transparent, representative and environmentally responsible institution, focused on its mission, not its own enlargement. We set out below a clear, focused strategy with key recommendations for making this change, which we call upon shareholders and Bank management to support. http://www.brettonwoodsproject.org/art-566100
This briefing can also be viewed as a PDF http://www.brettonwoodsproject.org/doc/env/catalyticconversion.pdf. This briefing is jointly published by the Bretton Woods Project, Christian Aid, Greenpeace, Practical Action, Tearfund, WWF UK.
Peter
