>After Keynes!
>Posted by: "Robert W Zimmerer" 76300.3217@...
>Mon Oct 20, 2008 9:16 am (PDT)

RZ: After Keynes - and Friedman too!
It would indeed be unfortunate if our new President were to
follow any academic ideology as he moves to rebuild the
fatally flawed financial system now collapsing in the USA
and around the world. To their credit PM Gordon Brown in
England and President Nicolas Sarkozy in France have called
for an International Meeting to construct a new world
financial structure.

JCT: They should do what they suggest in Millennium
Declaration Resolution C6 to Governments "to restructure the
global financial architecture." Guess they didn't notice the
solution way back in 2000.

RZ: Once again we see our financial structure crumbling from
the use of money, a token of value, being created as an
interest earning debt. This traditional bank practice known
as Fractional Reserve Banking requires exponential increase
in that debt.

JCT: It would if created as an interest-bearing credit too,
not just as a debt. Whether the exponential growth is on
credit or on debt, it's the usury, not the material of the
token, that causes the malfunction.

RZ: No PhD thesis has been awarded to an aspiring candidate
on this subject!

JCT: The banking systems engineer's thesis has already done
it. Google for bankmath.

RZ: Apparently it has escaped the notice of Econometricians
that debt whose regular interest payments are made from more
debt is the equation of exponential increase.

JCT: It didn't escape the notice of the banking systems
engineer. Bankmath has the Debt = Exp(it) as an exponential
function of interest and time.

RZ: Such a system can not be sustained and must collapse
from time to time as history shows!

JCT: I made the first presentation on a world-wide LETS to
the TOES conference in Denver in 1997 and you would have
known about bankmath except that Trent Shroyer got bankmath
banking systems engineering material banned from toeslist
years ago. Otherwise, you'd have known years ago.

RZ: A sustainable money supply must originate in a debt free
supply of legal tender

JCT: Trading debts is as useful as trading credits. Say we
each owe the local butcher $100 and I owe you $20. I could
pay you by taking on an extra $20 of debt and by you
dropping $20 in debt. Say we both had $100 owed to us by the
butcher and I owe you $20. I could pay you by claiming $20
less credit and by you claiming $20 more. Whether currency
is based on positives or negatives is irrelevant. So there's
nothing wrong with using debt as money, it's the growth of
debt on money that's the problem. So when you hear someone
say that the problem is that money is "created as a debt,"
remember they are not focused on the true instability in the
equation D=exp(it) which is "i" and for some reason think
the problem is in the "d".

RZ: upon which strictly controlled banks may be permitted to
continue their practice of fractional Reserve Banking.

JCT: Limiting the creation of chips to whatever is saved in
the safety deposit section is stupid. The creation of chips
should be limited to the amount of collateral that can be
pledged at the cage.

RZ: The creation and use as money of this tower of interest
bearing debt paper has finally broken the present financial
system. The obvious source of debt free legal tender is from
a nation creating it and spending it directly into
circulation. No more national debts.

JCT: Or "creating it and lending it directly into
circulation." Oldster monetary reformers think it can only
be spent into circulation and don't reaIize that it's easier
to take down the banks by substituting our lending for
theirs. The better way to inject the needed currency into
circulation is the one that also conquers the banks.

RZ: The European Union has cobbled together a group of
nations using a single currency each retaining limited
sovereignty to create some of it and a Central Bank with
limited authority to manage it. One can imagine the
difficulties in the USA among its States as they grew in
number from 13 to 50 had such a system been used!

JCT: Unless it's based on something universal like time.

RZ: Nations will soon meet with Gordon Brown and Nicolas
Sarkozy contending not only with national interests in
monetary reform but with determined opposition from failing
private banks and academic conformity. The disgraced wizards
of finance now placed in charge of recovering from the
disaster they caused will further reveal their incompetence.
How long will it take before they are replaced? Out of chaos
will a new order arise?

JCT: You bet. When the Argentine banking system crashed in
2001, they had no choice but to revert to the time standard
of money so that they were out of international debt by
2006. Hardly anyone notice how they did that. I look forward
to the day the global banking system crashes and they have
to follow the Argentine example on getting out of debt.
Whatever they did to go from busted to paid off two years
early is what we should do now too.

RZ: For a non academic analysis of great clarity read Ellen
Brown's latest comment at:
www.opednews.com/articles/THE-REAL-DEBATE-CRONY-SOC-by-
Ellen-Brown-081016-471.html

JCT: Wish I had time but she probably hasn't identified the
instability in the Debt = Exp(it) equation either.