It is good to see this. Here is another artcile
http://economics.uwaterloo.ca/needhdata/KrehmBankofCanada.pdf in the same vien. and there is more on money in http://economics.uwaterloo.ca/needhdata/needham2.html#money Dr. W. Robert Needham DEPARTMENT OF ECONOMICS University of Waterloo Waterloo, Ontario, Canada, N2L 3G1 Tel: 519-888-4567 ext 3949 Fax: 519-725-0530 Home: 519-578-4143 http://economics.uwaterloo.ca/fac-needham.html ["We cannot live only for ourselves. A thousand fibers connect us with our fellow men; and among those fibers, as sympathetic threads, our actions run as causes, and they come back to us as effects." - Herman Melville] ["Fascism should be more properly called corporatism, since it is the merger of state and corporate power." Benito Mussolini] Quoting Darryl and Natalia <[EMAIL PROTECTED]>: > For the economists to ponder. An 1816 problem of crumbling sea walls and poor > road conditions in the island state of Guernsey in the British Channel > Islands is solved by printing money. The government issued interest free > loans which were issued for various infrastructural repairs and public > facilities, resulting in a reinvigorated economy with no inflation. Investing > in people as the best approach to prosperity is in stark contrast to the > "spirit" of commerce today. Below from Sam Smith's > Progressive Review, Sept. 29/05 > > Natalia > > HOW TO PAY FOR A NEW NEW ORLEANS > > ELEVEN YEARS ago the Progressive Review ran a remarkable article by > Bob Blain in which it was proposed that the government free itself of > servitude to the private banking system and start printing money to > pay for public works that add to the wealth of the nation. > > If this seems zany, consider this: every time you use a credit card > you are allowing some bank to print money. Why do only bankers have > this privilege and not the US government? In part because the media - > from Fox News to NPR - won't let anyone even mention so at odds with > their distorted notion of how our economy works > > The whole article is well worth reading especially since one of the > prime examples Blain gives involves the island of Guernsey printing > money to rebuild its sea walls i.e. a sort of levee for land above sea > level. . . > > BOB BLAIN, THE PROGRESSIVE REVIEW, 1994 - Guernsey is an island state > located among the British Channel Islands about 75 miles south of > Great Britain. In 1816 its sea walls were crumbling, its roads were > muddy and only 4 1/2 feet wide. Guernsey's debt was 19,000 pounds. The > island's annual income was 3,000 pounds of which 2,400 had to be used > to pay interest on its debt. Not surprisingly, people were leaving > Guernsey and there was little employment. > > Then the government created and loaned new, interest-free state notes > worth 6,000 pounds. Some 4,000 pounds were used to start the repairs > of the sea walls. In 1820, another 4,500 pounds was issued, again > interest-free. In 1821, another 10,000; 1824, 5,000; 1826, 20,000. By > 1837, 50,000 pounds had been issued interest free for the primary use > of projects like sea walls, roads, the marketplace, churches, and > colleges. This sum more than doubled the island's money supply during > this thirteen year period, but there was no inflation. > > In the year 1914, as the British restricted the expansion of their > money supply due to World War I, the people of Guernsey commenced to > issue another 142,000 pounds over the next four years and never looked > back. By 1958, over 542,000 pounds had been issued, all without inflation. > > A visitor to the island that year later wrote: > > "I returned from Guernsey last weekend. It is a fascinating little > island. There are about 60,000 permanent residents on the island. The > average family owns 3.3 cars, their unemployment rate is zero and > their standard of living is very high. There is no public debt. There > is a surplus of public funds which earn interest. The Guernsey > Treasury increased the Ml of the island by 40 percent in the last > three-year period, and this increase did not do anything to inflation. > The price for a gallon of gasoline in England translates to about $5US > whereas, the price in Guernsey is about $2US. Contrary to the > teachings of current economics in all higher institutions, inflation > is not related to the volume of money but rather to the size of the > commercial debt." > > http://www.prorev.com/sovreign.htm > > SAM SMITH'S GREAT AMERICAN POLITICAL REPAIR MANUAL, 1997 - A report > of the island's States Office in June 1946 notes that island leaders > frequently commented that these public works could not have been > carried out without the issues, that they had been accomplished > without interest costs, and that as a result "the influx of visitors > was increased, commerce was stimulated, and the prosperity of the > Island vastly improved." By 1943, nearly a half million pounds worth > of notes belonged to the public and was so valued that much of it was > being hoarded in people's homes, awaiting the island's liberation from > the Germans. > > About the same time that Guernsey started to fix its sea walls the > town of Glasgow, Scotland, borrowed 60,000 pounds to build a fruit > market. The Guernsey sea walls were repaid in ten years, the fruit > market loan took 139. In the first part of the the 20th century, > Glasgow paid over a quarter million pounds in interest alone on this > ancient project. > > How did Guernsey avoid the fiscal disaster that conventional economics > prescribed for it? First and foremost by understanding that when you > build roads or sea walls or colleges or houses, you are not reducing > your society's wealth. In fact, if you do it right, you are creating > something that will add to its wealth. The money that was created was > simply backed by public works rather than gold or "full faith and > credit." It was, in fact, based on something more solid than the > dollar bills in our wallets today. In contrast, tacking on an interest > charge to public works -- as we do in the US -- creates no new wealth, > but merely transfers claims on existing wealth from debtors to creditors. > > [The cagey burghers of the Channel Islands are no longer interested in > this form of financing. The islands have instead become off-shore > havens for major banks and for the megarich.] > > JAMES GIBB STUART - he idea of credit creation by Government has > already been used effectively on several well-documented historical > occasions. > In 1865 Abraham Lincoln himself ordered the creation of 460 million > dollars to finance the latter stages of the American Civil War. > In August 1914 Lloyd George, then Chancellor of the Exchequer, printed > 300 million pounds sterling to rescue the British banks from a > war-induced liquidity crisis. > And from 1911 to 1923 Sir Denison Miller, Governor of the Australian > Commonwealth Bank, made regular issues of debt-free government money > to preside over the most prosperous period in his country's history. > Given that these and similar recorded instances of state-created > debt-free money were successful, the next obvious question is to ask > why they were not perpetuated. And the short answer is that banking > opposition was already too formidable. . . > The bankers maintained that creating credit at will, without debts to > be paid back or interest to be levied, can become reckless and > undisciplined, resulting in inflation and a debauching of the > currency. In certain conditions that can be so, and we should be aware > of it. But let us also consider the consequences of following the > bankers' protocol, and accepting that all new money be created as an > interest-bearing debt upon the community. > These consequences are all about us. They are seen today in the > economic cut-backs that governments are adopting right across the > hemisphere to meet some convergence criteria and cut their public > spending. . . > Governments and large corporations destroy natural amenities and > indiscriminately loot Earth's treasure house of non-recyclable energy > and resources, all because of the costs and the pressures of servicing > and sustaining the debt. > Because debt and the credit monopoly place us under bankerist control, > rather than political control, democracy itself is downgraded, losing > that independence of spirit and action to which all free peoples aspire. > Sir Robert Menzies, Prime Minister of Australia in the 1960s, said > that "there can be no independence without financial independence". No > people is truly sovereign which does not have control of its own money. > Our governments do not have that control when they have to borrow from > the banking system to create new resources. Politicians elected under > the people's mandate find themselves beholden to bankers and > financiers, who are beholden to no-one. Hence the current distrust of > politics and politicians. There is a malaise at the heart of society, > and politicians no longer have the means of tackling it, because they > do not seem to know how to take back control of the people's money. . . > We need to break the bankers' credit monopoly, and establish a > non-inflationary procedure whereby an elected government can create a > proportion of its own new money. > Promptly, we are told by the banking lobby that it just cannot be, > that debt-free money is vastly inflationary, and that the only "sound" > money is bank money, borrowed at interest. > But ironically the facts of economic history tell otherwise. . . It is > only within a debt-money system that chronic inflation has ever > occurred, beginning with the first recorded inflation which destroyed > http://www.prosperityuk.com/prosperity/articles/bigissue.html > |||||||||||||||||||||||||||||||||||||||||||||||||||||||| > > HOW TO PAY FOR A NEW NEW ORLEANS > > ELEVEN YEARS ago the Progressive Review ran a remarkable article by > Bob Blain in which it was proposed that the government free itself of > servitude to the private banking system and start printing money to > pay for public works that add to the wealth of the nation. > > If this seems zany, consider this: every time you use a credit card > you are allowing some bank to print money. Why do only bankers have > this privilege and not the US government? In part because the media - > from Fox News to NPR - won't let anyone even mention so at odds with > their distorted notion of how our economy works > > The whole article is well worth reading especially since one of the > prime examples Blain gives involves the island of Guernsey printing > money to rebuild its sea walls i.e. a sort of levee for land above sea > level. . . > > BOB BLAIN, THE PROGRESSIVE REVIEW, 1994 - Guernsey is an island state > located among the British Channel Islands about 75 miles south of > Great Britain. In 1816 its sea walls were crumbling, its roads were > muddy and only 4 1/2 feet wide. Guernsey's debt was 19,000 pounds. The > island's annual income was 3,000 pounds of which 2,400 had to be used > to pay interest on its debt. Not surprisingly, people were leaving > Guernsey and there was little employment. > > Then the government created and loaned new, interest-free state notes > worth 6,000 pounds. Some 4,000 pounds were used to start the repairs > of the sea walls. In 1820, another 4,500 pounds was issued, again > interest-free. In 1821, another 10,000; 1824, 5,000; 1826, 20,000. By > 1837, 50,000 pounds had been issued interest free for the primary use > of projects like sea walls, roads, the marketplace, churches, and > colleges. This sum more than doubled the island's money supply during > this thirteen year period, but there was no inflation. > > In the year 1914, as the British restricted the expansion of their > money supply due to World War I, the people of Guernsey commenced to > issue another 142,000 pounds over the next four years and never looked > back. By 1958, over 542,000 pounds had been issued, all without inflation. > > A visitor to the island that year later wrote: > > "I returned from Guernsey last weekend. It is a fascinating little > island. There are about 60,000 permanent residents on the island. The > average family owns 3.3 cars, their unemployment rate is zero and > their standard of living is very high. There is no public debt. There > is a surplus of public funds which earn interest. The Guernsey > Treasury increased the Ml of the island by 40 percent in the last > three-year period, and this increase did not do anything to inflation. > The price for a gallon of gasoline in England translates to about $5US > whereas, the price in Guernsey is about $2US. Contrary to the > teachings of current economics in all higher institutions, inflation > is not related to the volume of money but rather to the size of the > commercial debt." > > http://www.prorev.com/sovreign.htm > > SAM SMITH'S GREAT AMERICAN POLITICAL REPAIR MANUAL, 1997 - A report > of the island's States Office in June 1946 notes that island leaders > frequently commented that these public works could not have been > carried out without the issues, that they had been accomplished > without interest costs, and that as a result "the influx of visitors > was increased, commerce was stimulated, and the prosperity of the > Island vastly improved." By 1943, nearly a half million pounds worth > of notes belonged to the public and was so valued that much of it was > being hoarded in people's homes, awaiting the island's liberation from > the Germans. > > About the same time that Guernsey started to fix its sea walls the > town of Glasgow, Scotland, borrowed 60,000 pounds to build a fruit > market. The Guernsey sea walls were repaid in ten years, the fruit > market loan took 139. In the first part of the the 20th century, > Glasgow paid over a quarter million pounds in interest alone on this > ancient project. > > How did Guernsey avoid the fiscal disaster that conventional economics > prescribed for it? First and foremost by understanding that when you > build roads or sea walls or colleges or houses, you are not reducing > your society's wealth. In fact, if you do it right, you are creating > something that will add to its wealth. The money that was created was > simply backed by public works rather than gold or "full faith and > credit." It was, in fact, based on something more solid than the > dollar bills in our wallets today. In contrast, tacking on an interest > charge to public works -- as we do in the US -- creates no new wealth, > but merely transfers claims on existing wealth from debtors to creditors. > > [The cagey burghers of the Channel Islands are no longer interested in > this form of financing. The islands have instead become off-shore > havens for major banks and for the megarich.] > > JAMES GIBB STUART - he idea of credit creation by Government has > already been used effectively on several well-documented historical > occasions. > In 1865 Abraham Lincoln himself ordered the creation of 460 million > dollars to finance the latter stages of the American Civil War. > In August 1914 Lloyd George, then Chancellor of the Exchequer, printed > 300 million pounds sterling to rescue the British banks from a > war-induced liquidity crisis. > And from 1911 to 1923 Sir Denison Miller, Governor of the Australian > Commonwealth Bank, made regular issues of debt-free government money > to preside over the most prosperous period in his country's history. > Given that these and similar recorded instances of state-created > debt-free money were successful, the next obvious question is to ask > why they were not perpetuated. And the short answer is that banking > opposition was already too formidable. . . > The bankers maintained that creating credit at will, without debts to > be paid back or interest to be levied, can become reckless and > undisciplined, resulting in inflation and a debauching of the > currency. In certain conditions that can be so, and we should be aware > of it. But let us also consider the consequences of following the > bankers' protocol, and accepting that all new money be created as an > interest-bearing debt upon the community. > These consequences are all about us. They are seen today in the > economic cut-backs that governments are adopting right across the > hemisphere to meet some convergence criteria and cut their public > spending. . . > Governments and large corporations destroy natural amenities and > indiscriminately loot Earth's treasure house of non-recyclable energy > and resources, all because of the costs and the pressures of servicing > and sustaining the debt. > Because debt and the credit monopoly place us under bankerist control, > rather than political control, democracy itself is downgraded, losing > that independence of spirit and action to which all free peoples aspire. > Sir Robert Menzies, Prime Minister of Australia in the 1960s, said > that "there can be no independence without financial independence". No > people is truly sovereign which does not have control of its own money. > Our governments do not have that control when they have to borrow from > the banking system to create new resources. Politicians elected under > the people's mandate find themselves beholden to bankers and > financiers, who are beholden to no-one. Hence the current distrust of > politics and politicians. There is a malaise at the heart of society, > and politicians no longer have the means of tackling it, because they > do not seem to know how to take back control of the people's money. . . > We need to break the bankers' credit monopoly, and establish a > non-inflationary procedure whereby an elected government can create a > proportion of its own new money. > Promptly, we are told by the banking lobby that it just cannot be, > that debt-free money is vastly inflationary, and that the only "sound" > money is bank money, borrowed at interest. > But ironically the facts of economic history tell otherwise. . . It is > only within a debt-money system that chronic inflation has ever > occurred, beginning with the first recorded inflation which destroyed > http://www.prosperityuk.com/prosperity/articles/bigissue.html > |||||||||||||||||||||||||||||||||||||||||||||||||||||||| > > > All mail scanned by NAV > ---------------------------------------- This mail sent through www.mywaterloo.ca _______________________________________________ Futurework mailing list [email protected] http://fes.uwaterloo.ca/mailman/listinfo/futurework
